Company Presentation - Feb 2016 - Minor International
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Company Presentation – Feb 2016
FORWARD LOOKING STATEMENT
Statements included or incorporated in these materials that use the words "believe", "anticipate", "estimate", "target", or "hope", or that
otherwise relate to objectives, strategies, plans, intentions, beliefs or expectations or that have been constructed as statements as to future
performance or events, are "forward-looking statements" within the meaning are not guarantees of future performance and involve risks and
uncertainties that could cause actual results to differ materially from historical results or those anticipated at the time the forward-looking
statements are made. MINT undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new
information, future events or otherwise. MINT makes no representation whatsoever about the opinion or statements of any analyst or other
third party. MINT does not monitor or control the content of third party opinions or statements and does not endorse or accept any
responsibility for the content or the use of any such opinion or statement.
Disclaimer 2
Agenda 2015 Performance Recap & Recent Updates Minor Hotel Minor Food Minor Retail Corporate Information
2015 Performance Recap & Recent Updates The Milton Brisbane
CONTINUED GROWTH WITH DIVERSIFICATION
MINT reported 2015 net profit of THB 7.0 billion, a 60% increase, primarily from the robust performance of hospitality business,
together with gains from revaluation of investments in a total of THB 2,335 million relating to the acquisitions of Sun International
hotels in Africa, Oaks Elan Darwin and Minor DKL in Australia in 2015. Excluding such gains, 2015 core net profit increased by 9%.
REVENUES
+21% y-y
THB million
Excl extra gains
+15% y-y
50,000 48,149
39,787
40,000
30,000
20,000
2014 Hotel & Mixed-Use Restaurant Retail Trading 2015
NET PROFIT
THB million +60% y-y
Excl extra gains
+9% y-y
8,000
7,040
6,000
4,402
4,000
2,000
0
2014 Hotel & Mixed-Use Restaurant Retail Trading 2015
2015 Performance Recap 5
INTERNATIONAL PRESENCE
With solid diversification strategy, MINT’s presence was in 32 countries at the end of 2015 across its hospitality and restaurant
businesses.
REVENUE CONTRIBUTION
100% Hotel & Spa
13%
75% 43% 44% 50% International Restaurant
50% Thailand
87% Combination
25% 57% 56% 50%
0%
2008 2014 2015 2020F
* Excludes special gains
MINT’s Footprint 6
COMPLETION OF THE FINAL STAGE OF TIVOLI HOTELS & RESORTS ACQUISITION
MINT continues to invest in its future, poised for solid growth going forward.
Name Country Stars Rooms
Acquired in 2015
• The investment: 1. Tivoli Sao Paulo Sao Paulo, Brazil 5 220
‐ Euro 294.2 million (THB 11.5 billion) for the entire portfolio of 14 2. Tivoli Ecoresort Praia do Forte Bahia, Brazil 5 287
hotels; the largest-ever hospitality transaction in Portugal 3. Tivoli Lisboa Lisbon, Portugal 5 306
‐ Total of 14 hotels, of which 12 are in Portugal and 2 are in Brazil, 4. Tivoli Marina Vilamoura Algarve, Portugal 5 383
totaling 2,982 rooms
5. Tivoli Marina Portimão Algarve, Portugal 4 196
‐ Hotel operating platform and Tivoli Hotels & Resorts brand for
6. Tivoli Carvoeiro Algarve, Portugal 4 293
both Portugal and Brazil
7. Tivoli Oriente Lisbon, Portugal 4 279
• Size & valuation (entire portfolio):
No. of rooms acquired in 2015 1,964
‐ 9.6x EV/EBITDA multiple, a highly attractive valuation for well-
located assets in a strong European market Acquired in February 2016
‐ Revenue of Euro 121 million and normalized EBITDA of Euro 31 8. Tivoli Victoria Algarve, Portugal 5 280
million in 2015, which will further strengthen MINT’s earnings 9. Tivoli Palácio de Seteais Lisbon, Portugal 5 30
growth and diversification
10. Tivoli Jardim Lisbon, Portugal 4 119
• Plans going forward:
11. Tivoli Lagos Algarve, Portugal 4 324
‐ The brand, with its heritage of over 80 years, will be kept
12. Tivoli Sintra Lisbon, Portugal 4 77
‐ MINT will invest further in the Tivoli hotel assets to further
13. Tivoli Coimbra Coimbra, Portugal 4 100
enhance the positioning of the brand across its markets
14. The Residences at Victoria
‐ Tivoli will be used as platform for further expansion in the regions Golf Club (managed) Algarve, Portugal 5 88
No. of rooms acquired in 2016 1,018
Total Portfolio 2,982
Recent Development 7
COMPLETION OF THE FINAL STAGE OF TIVOLI HOTELS & RESORTS ACQUISITION (Cont’d)
In the first stage post-acquisition, MINT plans to renovate four Tivoli hotels to further enhance the positioning of the brand:
Tivoli Oriente, Tivoli Lisboa and Tivoli Marina Vilamoura in Portugal and Tivoli Sao Paulo – Mofarrej in Brazil.
Tivoli Coimbra
(100 Rooms)
Portugal
Tivoli Sintra
(77 Rooms)
Tivoli Ecoresort
Praia do Forte (287 Rooms)
Coimbra
Tivoli Palácio de Seteais Tivoli Oriente
Lisbon Tivoli Marina Vilamoura
Brazil
(30 Rooms) (279 Rooms)
(383 Rooms) Bahia
Sao Paulo
Algarve
Tivoli Jardim Tivoli Lisboa
The Residences at Victoria
(119 Rooms) (306 Rooms)
Golf Club (88 Rooms)
Tivoli Sao Paulo - Mofarrej
Tivoli Marina Portimão Tivoli Lagos Tivoli Carvoeiro Tivoli Victoria (220 Rooms)
(196 Rooms) (324 Rooms) (293 Rooms) (280 Rooms)
Acquired in 2015 Acquired in 2016
Recent Development 8
KEY DRIVERS OF 2016 AND BEYOND – MINOR HOTEL
Tivoli Renovation & Residential Anantara
African Portfolio
Integration New Rooms Projects Vacation Club
Renovations Completed & The Residences by Building Stronger Pipeline Leverage MINT’s Expertise
Ready for 2016 Anantara, Layan, Phuket of New Properties to Enhance Growth
• Anantara Siam Bangkok • Construction of 8 units • Adding over 30% of new • MINT’s platform and
(1st phase) completed; all 15 to be inventories: capability to help
done within 2016 - Anantara Mai Khao enhance potential
Integration of Tivoli Brand • Anantara Hua Hin contribution from:
• 3 units sold in 2015 - Anantara Chiang Mai
and Operating Platform • Anantara Dhigu Maldives Service Suites - Sun International
Anantara Chiang Mai
• Earnings enhancement - Elewana Collection
Serviced Suites - AVANI Riverside
through consolidation of
• Completion in 2016 Bangkok - Mozambique
entire Tivoli portfolio
• 30 units presold • Build /acquire more villas
• Leverage on Tivoli in key locations (e.g.
footprints to expand • Transfer expected to
Samui, Bali, China, etc)
MINT’s operations in start in 2Q16 Oaks
Europe and South Building Sustainable &
Torres Rani Mixed-Use
America Key Additions in 2016 Profitable Platform
Project in Maputo
• AVANI Riverside • Pricing scheme Capitalize on Oaks’ Solid
• Look for opportunity to • Completion in 2Q16
Bangkok: 249 rooms in restructuring resulted in: Brand and Platform
expand Tivoli brand • 2 residential units
elsewhere in the world 2Q16 presold
- shortened installment • Further improve sales &
period marketing platform (i.e.
• Anantara Kalutara, Sri Pipeline Beyond 2016 - higher cash position reservation /call center)
Lanka: 141 rooms in mid-
2016 • Anantara Desaru, - Lower bad debts in to enhance customer
Malaysia longer term experience
• Anantara Ubud, • Diversify customer base • Explore asset investment
Indonesia through more active opportunities both within
marketing efforts home base and overseas
2016 and Beyond 9
KEY DRIVERS OF 2016 AND BEYOND – MINOR FOOD
Singapore
Thailand Australia China Global Thai
Overhaul
Recovery Integration Expansion Concept
Project
Capturing Consumption Minor DKL Consolidation Ramp-up Renovation of Thai Outlet Expansion & Product Ramp-up Expansion of
Recovery in Thailand • Additional revenues and Express Improvement Restaurant Outlets in the UK
• Sustain growth momentum profits from consolidation • Extension of renovation • Market remains attractive • Patara Fine Thai Cuisine, in
of new product offerings of Minor DKL’s financials plan from 7 key Thai in the long-term despite the partnership with S&P,
• Enhance growth by Express outlets to over 15 recent economic slowdown successfully launched in
leveraging on MINT’s outlets in total • Continue to expand outlets, Dec-15
operating platform and • The renovation, expected although at a slower pace • More active expansion plan
international capabilities to complete in 2016, to be • Further strengthen product in place for 2016
• Ramp-up Burger King’s ready to capitalize on and service to increase
outlet expansion efforts consumption recovery
Further Enhance Global table turns and traffic
Supply Chain through Vertical • Focus on improving
Integration Renovation for Other profitability
• Vertical Concepts
• Build on BreadTalk’s integration of • 3 Poulet outlets to be Operation Integration India
traction with active outlet Veneziano’s renovated in 2016 Operations
• Completed back-office
expansion coffee roasting
integration to streamline
capability across
Leadership & Expertise in Business Streamlining costs, increase efficiency
MINT’s global
Airport Operations • Enhance operational and support outlet India Operations Gaining
supply chain to
• 13 outlets opened at Don excellence and productivity expansion Strong Traction
drive sales and
Muang Airport Terminal 2 margins to reduce operating cost • Swensen’s operation in
at the end of 2015, with • Streamline business to India is gaining strong
over 8 more to be opened focus on core brands traction, posting consistent
in 1H16 double digit same-store-
• Consider closing non-
• Continue to look for performing outlets sales growth
opportunities in both • India contribution to
domestic and overseas continue to ramp-up in
airports 2016 and beyond
2016 and Beyond 10KEY DRIVERS OF 2016 AND BEYOND – RESTAURANT
Minor Hotel
Singapore
Thailand Australia China Global Thai
Overhaul
Recovery Integration Expansion Concept
Project
Capturing Consumption Minor DKL Consolidation Ramp-up Renovation of Thai Outlet Expansion & Product Ramp-up Expansion of
Recovery in Thailand • Additional revenues and Express Improvement Restaurant Outlets in the UK
• Sustain growth momentum profits from consolidation • Extension of renovation • Market remains attractive • Patara Fine Thai Cuisine, in
of new product offerings of Minor DKL’s financials plan from 7 key Thai in the long-term despite the partnership with S&P,
• Enhance growth by Express outlets to over 15 recent economic slowdown successfully launched in
leveraging on MINT’s outlets in total • Continue to expand outlets, Dec-15
operating platform and • The renovation, expected although at a slower pace • More active expansion plan
international capabilities to complete in 2016, to be • Further strengthen product in place for 2016
• Ramp-up Burger King’s ready to capitalize on and service to increase
outlet expansion efforts consumption recovery
Further Enhance Global table turns and traffic
Supply Chain through Vertical • Focus on improving
Integration Renovation for Other profitability
• Vertical Concepts
• Build on BreadTalk’s integration of • 3 Poulet outlets to be Operation Integration India
traction with active outlet Veneziano’s renovated in 2016 Operations
• Completed back-office
expansion coffee roasting
integration to streamline
capability across
Leadership & Expertise in Business Streamlining costs, increase efficiency
MINT’s global
Airport Operations • Enhance operational and support outlet India Operations Gaining
supply chain to
• 13 outlets opened at Don excellence and productivity expansion Strong Traction
drive sales and
Muang Airport Terminal 2 margins to reduce operating cost • Swensen’s operation in
at the end of 2015, with • Streamline business to India is gaining strong
over 8 more to be opened focus on core brands traction, posting consistent
in 1H16 double digit same-store-
• Consider closing non-
• Continue to look for performing outlets sales growth
opportunities in both • India contribution to
domestic and overseas continue to ramp-up in
airports 2016 and beyond
Souq Waqif Doha by AVANI 2016 and Beyond 11FINANCIAL PERFORMANCE – MINOR HOTEL
2015 core revenues of hotel & mixed-use business (excluding special gains) grew by 23%, as a result of growth of owned hotels
operations, addition of newly acquired hotels, and sale of residential development villas. 2015 core EBITDA and net profit
increased by 11% and 16% respectively, lower than the revenue growth, attributable to the decline of the higher-margin hotel
management business, addition of lower-margin newly acquired hotels and decline in profitability of Anantara Vacation Club.
+26% y-y Key Highlights
THB million
+23% y-y*
Owned hotels
24,304 Revenue grew by 47% y-y, as a result of
17,977
19,330 49% system-wide 2015 RevPar increase of 5% y-y
16,390 of 2015 hospitality (organic RevPar +14%), together with the
Revenue 12,657 revenues addition of newly acquired hotels.
Oaks
+21% y-y Revenue declined by 2% while RevPar
+11% y-y* 23% declined by 11% in THB term (2015 revenue
6,816 of 2015 hospitality increased by 10% while RevPar increased by
5,206 5,647 revenues 2% in AUD term).
EBITDA 4,535
3,313
EBITDA Management contracts Revenue decreased by 22%, to more
26.2% 27.7% 29.0% 29.2% 28.0%
Margin
28.9%* 26.0%*
4% normalized level as 1Q14 was an exceptional
quarter for Maldives hotels, with the VIP
of 2015 hospitality
+38% y-y guests. System-wide 2015 RevPar increased
revenues
+16% y-y* by 18% (organic RevPar +10%);
3,679
2,449 2,669
NPAT 1,940 Real estate Revenue increased by 30% y-y primarily
1,158 because of sales of The Residences by
Net
19% Anantara, Layan, Phuket, together with the
9.1% 11.8% 13.6% 13.8% 15.1%
Margin 13.5%* 12.7%*
of 2015 hospitality increase in revenues of Anantara Vacation
2011 2012 2013 2014 2015
revenues Club.
* Excludes special gains from revaluation of investments in Oaks Elan Darwin of THB 20 million and Sun International hotels of THB 650 million in 2015, and Serendib of THB 87 million (before tax) in 2014
Minor Hotel 12MINOR HOTEL - INTERNATIONAL PRESENCE
In recent years, MINT has implemented a solid diversification strategy. At the end of 2015, MINT operates hotels and spas under
a combination of investment, joint-venture and management business models in 24 countries, with another 6 countries in the
pipeline over the next three years.
REVENUE CONTRIBUTION
100% 6%
75% 59% International
60% 66%
50% Thailand
94%
25% 41%
40% 34%
0%
2008 2014 2015 2020F
* Excludes special gains
Investment
Management
Combination
New Destinations in Pipeline
Hubs
Minor Hotel 13SYSTEM-WIDE HOTEL OPERATIONS
2015 system-wide RevPar decreased by 2% y-y. Occupancy increased mainly from hotels in Thailand as a result of the recovery of
tourism since the political unrest in 2014. ADR declined primarily because of the addition of new AVANI hotels in Africa which
commanded ADRs that were lower than average, together with the decline of Oaks’ ADR in THB term because of the weakening
of AUD. Excluding new hotels and foreign exchange impact, organic RevPar of the entire portfolio increased by 4% in 2015.
NUMBER OF HOTEL ROOMS ADR
No of Rooms +20% y-y Organic excl FX Impact
-2% y-y
20,000 THB
17,714 -5% y-y
15,000
14,721 6,110
12,800 6,000 5,589 5,573 5,830
5,385
10,348 MLR
10,000 9,575
Managed
Joint-venture 4,000
5,000 Owned
0 2,000
2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
OCCUPANCY REVPAR
Organic Organic excl FX Impact
+4% y-y THB +4% y-y
80% 5,000
+2% y-y -2% y-y
69% 70%
70% 66% 68% 3,871 3,901 4,024 3,964
65% 4,000
3,479
60% 3,000
50% 2,000
40% 1,000
2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
Minor Hotel 14OWNED-HOTELS OPERATIONS
2015 HOSPITALITY
REVENUE CONTRIBUTION Owned hotels contribute about half of hotel & mixed-use revenues in 2015, an increase from the same period
last year, from improving operations of existing owned hotels and additional revenues of newly acquired
49% hotels. 2015 RevPar of owned hotels was up 5%, primarily from the occupancy increase on the back of the
Owned-
hotels recovery of Thailand hotels, particularly in Bangkok. ADR declined because of the new hotels in Africa, which
commanded lower rates. 2015 organic RevPar excluding foreign exchange impact improved by 13%.
NUMBER OF HOTEL ROOMS ADR
No of Organic excl FX Impact
Rooms -2% y-y
+73% y-y THB
6,000 -6% y-y
5,387
7,028
7,000 6,583
4,000 6,385
3,112 6,035
2,554 2,676 6,000
2,335
5,377
2,000
5,000
0 4,000
2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
OCCUPANCY REVPAR
Organic Organic excl FX Impact
+9% y-y +13% y-y
THB
80%
+7% y-y +5% y-y
68% 5,000
70% 66% 67%
4,372 4,393
59% 4,168
58% 4,000 3,977
60%
3,133
50% 3,000
40% 2,000
2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
Minor Hotel 15OWNED-HOTELS PERFORMANCE BY GEOGRAPHY
2015 HOSPITALITY
REVENUE CONTRIBUTION Contribution of Bangkok hotels in 2015 remained at around 12% of total hotel & mixed-use revenues (6% of
12% total MINT revenues). The strong recovery of RevPar of hotels in Thailand, especially in Bangkok helped
Bangkok
hotels offset the decline in RevPar of overseas hotels. 2015 RevPar of system-wide owned hotels increased by 5% in
2015.
BANGKOK OVERSEAS
RevPar Growth RevPar
THB Growth
(y-y) +2% +36% +13% -25% +40% (y-y) +568% +99% -44% +8% -40%
THB THB
6,000 17,436
4,662 4,830 4,943
4,435 4,589 16,000
3,278 12,246
2,901 3,473 12,177
4,000 12,000 11,151
70% 2,473 70% 8,793
2,138 63% 6,903 7,452 7,437
51% 8,000 70% 70% 62%
48% 6,143 61% 60%
2,000
4,499
4,000
0 0
2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
THAILAND PROVINCES 2015 KEY HIGHLIGHTS
RevPar Growth
(y-y) +11% +16% +17% -2% +10% • Bangkok: robust recovery in 2015, with RevPar increasing to the
THB
level that is already higher than in 2013
8,000 • Thailand provinces: resilient performance throughout the five
6,686 6,937 7,060
5,369 5,840 4,974 years, demonstrating the strength of Thailand tourism industry,
6,000 4,526
3,404 69% 4,599 together with Minor Hotel Group’s strong products and marketing
68% 3,944 70%
4,000 63% 65% efforts
2,000 • Overseas: decline in system-wide owned RevPar, largely because
of the addition of new hotels with RevPar that are lower than the
0 portfolio’s average. Organic owned RevPar increased by 2%
2011 2012 2013 2014 2015
% Occupancy ADR RevPar
Minor Hotel 16OAKS’ OPERATIONS
2015 HOSPITALITY
REVENUE CONTRIBUTION Oaks’ serviced-suites operation is the second largest segment in the hotel and mixed-use business, with 23%
revenue contribution in 2015. Oaks continues to provide the hotel & mixed-use business with stable
performance throughout the year, compared to hotel operations which is more seasonal. With RevPar
23% increase of 2% in AUD term, Oaks’ 2015 revenues in AUD increased by 10% y-y.
Oaks
NUMBER OF MANAGED ROOMS ADR
THB AUD
No of Flat y-y THB
Rooms 6,000 5,160 -11% y-y 180
4,977 4,788 4,795
6,223 6,232
4,271
6,000 5,897
4,000 170
5,040 5,180
5,000 168
164
2,000 162 AUD 160
4,000
160 +2% y-y
157
3,000 0 150
2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
OCCUPANCY REVPAR
90% THB AUD
Flat y-y THB
5,000 150
-11% y-y
3,917 3,962 3,730
79% 4,000 3,643 3,258
78%
80% 77% 140
76% 76%
3,000
130
70% 2,000
126 127
124 124 120
1,000 123 AUD
+2% y-y
60% 0 110
2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
Minor Hotel 17MANAGED-HOTELS OPERATIONS
2015 HOSPITALITY
REVENUE CONTRIBUTION In 2015, managed hotels contributed 4% of hotel & mixed-use revenues. System-wide RevPar of managed
hotels portfolio increased by 18% y-y in 2015, primarily from the ramping up of the relatively new hotels in
China and UAE, good performance of hotels in Thailand and the new Banana Island Resort Doha by
4%
Anantara, which has exceptionally high ADR . However, 2015 revenue from management service declined
Management
Contracts by 22% y-y, as 2014 had a remarkably high base from hotels in the Maldives with VIP guests.
NUMBER OF HOTEL ROOMS ADR
No of +13% y-y THB Organic excl FX Impact
Rooms -6% y-y
3,910 9,000
4,000 +4% y-y
3,254 3,453
3,000 7,000 7,038
6,748
2,023 5,594
2,000
5,047
1,257 5,000 4,831
1,000
0 3,000
2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
OCCUPANCY REVPAR
Organic Organic excl FX Impact
80% +9% y-y THB +8% y-y
+7% y-y +18% y-y
5,000
70% 4,400
63%
4,000 3,737
58%
60% 54% 55% 3,227
3,000 2,748
49% 2,375
50%
2,000
40% 1,000
2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
Minor Hotel 18HOTEL EXPANSION PIPELINE
Expansion inside and outside Thailand will contribute to revenue & profit in coming years.
HOTEL INVESTMENT MANAGEMENT CONTRACTS
• Kalutara, Sri Lanka • Riverside • Tivoli Victoria • Torres Rani, • Guiyang, China (218 rms) • The Residences • Loisaba • Radius,
2016F (141 rms) Bangkok, Vilamoura, Portugal Maputo, at Victoria Golf Tented Australia
• Jabal Al Akhdar, Oman
Thailand (280 rms) Mozambique* (115 rms) Club, Portugal Camp, (80 rms)
(249 rms) • Tivoli Palacio de Seteais, (181 rms) (88 rms) Kenya
• Salalah, Oman (136 rms) (12 rms)
Portugal (30 rms)
• Al Houara Tangier, • Kiboko
• Tivoli Jardim, Portugal Morocco (150 rms)
(119 rms) Star Beds,
Kenya
• Tivoli Lagos, Portugal (4 rms)
(324 rms)
• Tivoli Sintra, Portugal
(77 rms)
• Tivoli Coimbra, Portugal
(100 rms)
• Luang Prabang, Laos • Doha, Qatar • Nusa Dua,
2017F (101 rms) (101 rms) Bali,
• Qiandao Lake, China • Nusa Dua, Bali, Indonesia
(120 rms) Indonesia (96 rms)
• Shanghai, China (260 rms) (433 rms) • Neemrana,
• Chiang Mai, Rajasthan,
• Tozeur, Tunisia (93 rms) India
Thailand
• Le Chaland, Mauritius (70 rms) (116 rms)
(176 rms)
• Desaru, Malaysia • Khao Lak • Oman (198 rms) • Jabal
2018F (103 rms) (327 rms) • Dubai Creek, UAE (290 rms) Dhannah, UAE
(230 rms)
• Durrat Al Bahrain, Bahrain
(220 rms) • Queensland,
Australia
• Jabal Dhannah, UAE (219 rms)
(60 rms)
• Busan, Korea
(404 rms)
2019F
• Ubud, Bali, • Deira • Ras Al Khaimah, UAE
Indonesia* Islands, (300 rms)
(80 rms) Dubai, UAE* • Zanzibar, Tanzania
(500 rms) (150 rms)
Total 13 Hotels / 2,511 Rooms 27 Hotels / 4,440 Rooms
* Note: Joint-ventured properties
Minor Hotel 19REAL ESTATE BUSINESS – ANANTARA VACATION CLUB
2015 HOSPITALITY Part of the real estate business, Anantara Vacation Club is growing to become another significant contributor
REVENUE CONTRIBUTION
to the hotel and mixed-use business. Number of members have seen impressive growth trajectory over the
19% past three years, primarily driven by four main markets – China, Thailand, Hong Kong and Singapore. The
Real Estates
five-year plan calls for a total of 450 units of inventory across 10 destinations to accommodate the members’
growth. AVC sales grew by 7% y-y in 2015, while margins were temporarily under pressure because of the
change in pricing scheme to accelerate cash flows and reduce cancellation rate.
TOTAL NUMBER OF MEMBERS MEMBERS PRIMARILY IN ASIA
Growth (y-y) +207% +67% +41% +28% US, 1% UAE, 1% Others, 11%
Indonesia, Korea, 1%
No. of
Members 6,928 1%
Japan, 3%
6,000 5,431
Australia, China, 38%
3,857 3%
4,000 Malaysia,
2,309 9%
2,000 Hong Kong,
751 11%
0 Singapore, Thailand,
2011 2012 2013 2014 2015 10% 11% As at Dec 2015
INVENTORY TO ACCOMMODATE GROWING MEMBERS GROWTH DRIVEN BY FOUR MARKETS
No. of Units China
6 Destinations: 10 Destinations No. of
500 Queenstown Members Hong Kong
450 4,896
Bali 5,000 Thailand
400 Sanya Singapore
4,000 3,731
Samui
300 +48%
Phuket 3,000 2,460 +111%
Bangkok
200 2,000 +300%
1,444 +38%
119 137 +35%
106 +428% +39%
100 1,000 +239% +23% +19% +5%
25 46 407 +596%
+107% +36% +12% +10%
0 0
2011 2012 2013 2014 2015 2020F 2011 2012 2013 2014 2015
Minor Hotel 20REAL ESTATE BUSINESS - RESIDENTIAL
2015 HOSPITALITY
REVENUE CONTRIBUTION MINT launched The Residences by Anantara, Layan, Phuket in 2H15, with three units sold and revenues
recognized in 4Q15. To ensure the revenue stream from residential sales in the coming years, MINT has
19%
Real Estates additional residential projects in the pipeline, including in Chiang Mai of Thailand, Maputo of Mozambique,
Desaru of Malaysia and Ubud of Indonesia. Other residential projects will be selectively considered in various
hotel destinations in order to increase returns of the overall project.
THE RESIDENCES BY ANANTARA, LAYAN, PHUKET THE ESTATES SAMUI
The project is situated on Above a secluded cove of
Sold Inventory
Layan beach, one of the most powder-white sands and crystal- 21%
21%
picturesque bays on west blue waters, The Estates Samui
coast of Phuket. Inventory provide complete privacy and Sold
79% spectacular panoramic views with 79%
15 uniquely designed pool its own stretch of beach.
villas
Up to 8 bedrooms, each with 21 metre private
infinity pool
1,313 to 2,317 sq.m. of built-up area
Construction of 8 units completed
ANANTARA CHIANG MAI SERVICED SUITES TORRES RANI, MAPUTO ST. REGIS RESIDENCES
A 50% joint-venture with U A 49% joint-venture
City Pcl. (formerly Natural with Rani Investment,
Park) , the project is in the the project is 5 minutes
city center of Chiang Mai, from Maputo CBD.
across from Anantara
Chiang Mai Resort & Spa. 187-key, 18-storey
residential tower
44 units in 7-storey
condominium building 20,926 sq.m., 21-
65 to 162 sq.m. (one to storey office tower
three bedrooms)
The project will be
Completion expected in completed in 2016
2016
Minor Hotel 21Minor Food
FINANCIAL PERFORMANCE – MINOR FOOD
2015 core revenues of the restaurant business (excluding special gains) increased by 11%, attributable to outlet expansion of 8%.
2015 core net profit increased by 1%, at a lower rate than the increase in revenues, as margins of Singapore hub continued to be
under pressure, with key Thai Express outlets temporarily closed for renovation.
+21% y-y Key Highlights
THB million +11% y-y*
20,339 Total-system-sales
15,343 16,754 Brands that reported impressive double-digit
13,192
growth of
Revenue 12,751 total-system-sales growth in 2015 are Burger
11.2% King, Riverside, The Coffee Club and The Pizza
In 2015 Company.
+70% y-y
Outlet expansion In 2015, Burger King, Riverside, BreadTalk, SSP
+11% y-y* of and The Pizza Company saw the fastest outlet
4,792
8% expansion (in terms of percentage growth).
2,884 2,759 2,817
2,238 in 2015
EBITDA
EBITDA 22.6% 17.0% 18.0% 16.8% 23.6% Same-store-sales Positive same-store-sales growths of The Pizza
Margin 16.4%* 16.7%* growth of Company, Sizzler, Burger King and Dairy Queen
+109% y-y were offset by the soft performance of
-0.2% Swensen’s and Ribs and Rumps, while Thai
+1% y-y*
in 2015 Express was facing challenging macro economic
NPAT 3,237
environment in Singapore, and Riverside comp
1,833 1,501 1,550 growth was impacted by its active outlet
1,180
expansion. Nonetheless, geographical and
Net multi-brand diversification made MINT more
Margin 14.4% 8.9% 9.8% 9.3% 15.9%
7.5%* 8.4%* resilient than smaller players.
2011 2012 2013 2014 2015
* Excluding gain on reclassification of investment in S&P of THB 1,054 million, netted off with impairment charge of China business of THB 93 million in 2011 and gain on fair value adjustment of change
in status of investments in Minor DKL, MINT’s Australian restaurant hub of THB 1,665 million in 2015.
Minor Food 23MINOR FOOD - INTERNATIONAL PRESENCE
MINT operates four restaurant hubs: Thailand, Singapore, Australia and China. MINT’s restaurant presence is now in 19 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 that MINT operates.
REVENUE CONTRIBUTION
100%
19%
33% 34% 42%
75%
International
50%
81% Thailand
67% 66% 58%
25%
0%
2008 2014 2015 2020F
Owned
Franchised
Combination
Hub
Minor Food 24MINOR FOOD – OPERATIONAL PERFORMANCE
2015 total-system-sales of the restaurant business grew 11.2% y-y, primarily from the outlet expansion of 8%, mostly in Thailand
and China. Same-store-sales growth was flat in 2015. Thailand’s positive same-store-sales growth was offset by Singapore’s
negative same-store-sales growth in 2015.
SSS & TSS GROWTH RESTAURANT OUTLETS BY GEOGRAPHY
International 3,139
20%
Thailand
15.1% +8% y-y 39%
14.1% 13.8% 1,851
15% 13.1% 1,708
11.2% 37% 36%
1,043
9.0% 33% 61%
10%
63% 64%
67%
5.5%
5% 2008 2014 2015 2020F
1.5%
0.4% RESTAURANT OUTLETS BY OWNERSHIP
-0.2%
0%
Franchised 3,139
Owned
+8% y-y 50%
-5%
2011 2012 2013 2014 2015 1,851
1,708
No. of
1,257 1,381 1,544 1,708 1,851 48%
Outlets 1,043 50%
38% 50%
59%
Same-Store-Sales Growth Total-System-Sales Growth 53%
50% 50%
52%
82%
62%
2008 2014 2015 2020F
Minor Food 25THAILAND HUB
2015 RESTAURANT
REVENUE CONTRIBUTION Revenues from domestic operations still accounted for about two-thirds of total restaurant revenues in
2015. The Pizza Company, Sizzler and Burger King reported strong same-store-sales growth, demonstrating
66% Thailand hub’s ability to stay ahead of competition amidst the slowdown of the macro backdrop.
Thailand
THAILAND’S SSS & TSS GROWTH RESILIENT OPERATIONS
Thailand hub’s same-store-sales growth was 2.1% in 2015, Constant innovation of menus with the launch of 48 new
improving from 2013 and 2014 despite the sluggish domestic items for dine-in restaurants.
consumption in 2015. The resiliency was attributable to successful
new strategies, continued product innovations, together with Creative new ice cream flavors to address the changing
effective marketing and promotional campaigns. taste of consumers.
With consistent outlet expansion, Thailand hub saw total-system- Successful marketing initiatives through social media, with
sales growth of 11% in 2015. over one million likes achieved on Sizzler Thailand page by
mid-February 2016
20%
Attractive product offering resulting in traffic increase of
almost 10% y-y in 4Q15.
15%
Continued focus on domestic market with new store
openings including drive-thru format.
10%
5%
0%
2011 2012 2013 2014 2015
Same-Store-Sales Growth Total-System-Sales Growth
Minor Food 26SINGAPORE HUB
2015 RESTAURANT
REVENUE CONTRIBUTION Like many other F&B operators in the market, our Singapore hub has been affected by the economic
slowdown and increased competition throughout 2015. The hub took the opportunity to renovate some of
the key outlets and gradually overhaul the customer journey to revive the brand image as well as maintain
15%
Singapore its leadership position as one of the largest and most trusted Thai restaurant chains in Singapore .
SINGAPORE’S SSS & TSS GROWTH DOMINANCE IN THAI CUISINE SEGMENT
Same-store-sales growth of Singapore hub remained negative in Thai Express’s refurbishment program has expanded from the
2015 mainly due to both key brands - Thai Express and Xin Wang original 7 outlets to over 15. The program is expected to yield
Hong Kong Café. satisfactory results later in the year.
Total-system-sales growth continued to be negative because of the As part of its aspiration to dominate Thai cuisine segment in
pause in outlet expansion and temporary closure of some key Thai Singapore, Minor Food Group further extended its collaboration
Express outlets for renovation. with BreadTalk Singapore with the plan to launch Thai Express in
20%
Food Republic, BreadTalk’s food atrium concept.
The hub is launching China-based Riverside’s Sichuan barbecue
15% fish in Singapore, which should well satisfy the palate of Asians
outside China.
10%
Apart from Singapore, Thai Express also gains increasing
5% recognition in Vietnam under its franchise operations. The 15
outlets registered significantly strong total sales and comparable
0% sales growths in 4Q15.
-5%
-10%
-15%
2011 2012 2013 2014 2015
Same-Store-Sales Growth Total-System-Sales Growth
Minor Food 27AUSTRALIA HUB
2015 RESTAURANT
REVENUE CONTRIBUTION In 2016, Australia hub’s contribution to total restaurant business will significantly increase as MINT started
to consolidate the Australian performance, as opposed to the recognition of equity income in previous
years, because of the increased shareholding from 50% to 70% since November 2015.
3%
Australia
AUSTRALIA’S SSS & TSS GROWTH SUCCESSFUL VERTICAL INTEGRATION
Australia hub remained resilient, reporting flat same-store-sales MINT’s Australia hub has successfully completed the full vertical
growth in 2015 in the midst of soft economy in Australia. integration of Veneziano into the Group, where all The Coffee Club
outlets are now supplied with the award-winning Veneziano
Total-system-sales continued to grow by 14% because of outlet
coffee. The integration is expected to drive sales volume of both
expansion, together with the addition of Veneziano Group
The Coffee Club and Veneziano, as well as enhance profitability
acquired in September 2014.
going forward.
25%
With increased shareholding and consolidation of financial results
20% of Minor DKL since November 2015, MINT targets to drive both
the outlet expansion and comparable sales growth of Australia
15%
hub going forward given the relatively stabilized economic
environment in Australia.
10%
5%
0%
-5%
2011 2012 2013 2014 2015
Same-Store-Sales Growth Total-System-Sales Growth
Minor Food 28CHINA HUB
2015 RESTAURANT
REVENUE CONTRIBUTION China hub continued to show improvement in its total sales growth since the acquisition of Riverside at the
14% end of 2012. MINT remains confident in the growing middle class in China and sees the long term potential
China
in the country. With its focus on increasing the scale, while instilling productivity and efficiency in the
everyday operations of all brands, MINT expects its China hub to yield a meaningful contribution in the
future.
CHINA’S SSS & TSS GROWTH DRIVING GROWTH AND PRODUCTIVITY
Same-store-sales of China operations gradually improved in 2015, Since the acquisition of Riverside in 2012, MINT has actively
as the expansion of Riverside outlets become more stabilized and expanded number of Riverside outlets to strengthen the brand
Sizzler reported strong performance. awareness and coverage in key cities.
Total-system-sales growth in 2015 was still robust at 24%, from In 2015, MINT successfully integrated the operations and back-of-
continued active expansion of the Riverside outlets (+20% y-y) house support functions of Riverside with the existing China hub’s
corporate office.
Acquisition of
Riverside
In 2016, MINT will focus on driving organic sales growth, improving
productivity, applying renowned Minor Food Group’s operational
300%
excellence to the newly integrated platform, and optimizing
overhead and administrative cost structure. Examples of the
initiatives include the implementation of Ready-to-Use sauces and
seasoning as well as Quality Assurance process to ensure the
30% consistency of taste and quality across all brands in China.
20%
10%
0%
-10%
-20%
2011 2012 2013 2014 2015
Same-Store-Sales Growth Total-System-Sales Growth
Minor Food 29Minor Retail
FINANCIAL PERFORMANCE – MINOR RETAIL
2015 revenues of retail trading & contract manufacturing business declined by 5% y-y from soft performance of both fashion and
manufacturing businesses as a result of the slowdown of the domestic economy. Net profit declined by 32%, at a higher rate than
the decline in revenues, because of the lower operating leverage and promotional discounts.
-5% y-y Key Highlights
THB million 3,703
3,412 3,616 3,505
Revenue 2,923
Retail trading 2015 revenue from retail trading decreased
by 5%, because of the weak domestic
70% consumption which continued to affect
of 2015 retail industry-wide discretionary spending, and
revenues the Bangkok bombing incident in August
-22% y-y which temporarily impacted the high-traffic
384 outlets in the area;
338
289 300
EBITDA
4
EBITDA 0.2% 8.5% 9.3% 10.4% 8.6%
Margin
-32% y-y
Contract
151 183 2015 revenue from contract manufacturing
123 124 manufacturing
decreased by 6%, from delayed orders from
NPAT
30% NMT’s key customers.
of 2015 retail
revenues
-110
Net -3.8% 3.6% 4.2% 4.9% 3.5%
Margin
2011 2012 2013 2014 2015
Minor Retail 31MINOR RETAIL – OPERATIONAL PERFORMANCE
2015 total-system-sales of retail trading declined by 3.3% y-y, while same-store-sales declined by 6.3% because of soft domestic
consumption, together with the impact of the Bangkok bombing on the surrounding high-traffic outlets. In 2015, number of
outlets increased by 3.3% y-y primarily from the increase of Bossini and Gap outlets, together with the launch of the new brand,
Banana Republic.
SSS & TSS GROWTH SALES PER SQ. M.
30% THB
140,000
18.9%
20%
120,000 119,163
14.6%
12.0%
14.6% 105,248
10%
100,000 102,333
3.8% 94,860
94,002
0% -3.3% 80,000
0.3%
-2.1% -8.1%
-10% -6.3% 60,000
2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
No. of No. of
246 235 276 297 307 246 235 276 297 307
Shops Shops
Same-Store-Sales Growth Total-System-Sales Growth Fashion & Cosmetic Sales per Sq. m.
Minor Retail 32Corporate Information
Elephant Pepper Camp Masai Mara, Cheli PeacockCAPEX & BALANCE SHEET STRENGTH
In addition to committed CAPEX, MINT also set aside additional CAPEX for future investments and new opportunities. Even with
recent acquisitions, leverage ratio remains below the internal policy. With its solid balance sheet, MINT will be able to primarily
use its internal cash flow and debt financing to fund its CAPEX requirements going forward. In addition, MINT and its senior
debenture have “A+” rating by TRIS.
CAPEX PLANS – COMMITTED & NEW OPPORTUNITIES LEVERAGE RATIOS
THB million X X
15,000 6.0 1.4 Internal
1.27x Policy
1.2
1.15x
5.0 1.0
12,000
0.8
4.0
0.6
9,000
0.4
3.0 2011 2012 2013 2014 2015
6,000 Interest Bearing Debt Net Interest Bearing
to Equity Debt to Equity
2.0
BACK-UP FINANCING
3,000
1.0
THB million Note: Cash on hand as at end of 2015
is THB 4,003 million
- - 80,000
Shareholders’
2015 2016F 2017F 2018F 2019F 2020F Equity
60,000
35,915
Restaurant Hotel & Mixed-use Retail Trading 40,000 Equity*
Debt 7,981
Additional CAPEX (non-committed average per annum) 20,000 45,473 Debt
for New Opportunity/Acquisition(s) 23,975
0
EBITDA coverage on committed CAPEX Outstanding Borrowing & Equity Un-Utilized Facility
* 2016 committed CAPEX includes the final stage of Tivoli acquisition * Incremental capital increase from MINT-W5 exercise, assuming 100% MINT-W5 conversion
Corporate Information 34FIVE-YEAR ASPIRATIONS
2020F
> 210 hotels
> 500 residences built to
2015 date
> 450 timeshare units
138 hotels > 3,100 restaurants
2009 75 residences built to > 360 retail shops & POS
date (> 29,000 Sqm)
137 timeshare units
30 hotels 1,851 restaurants
1,112 restaurants 307 retail shops & POS
292 retail shops & POS (25,605 Sqm)
(14,275 Sqm)
7.0bn 2020F
NPAT 2015
(THB)
1.4bn
2009
Corporate Information 35MINT’S FIVE-YEAR STRATEGY 2016-2020
Five-year strategy consists of the following three key pillars, with clear goals and measurements.
2020
NPAT growth of 15-20% CAGR ROIC of >15%
Goals
Drive a Portfolio of Own
Expand Through Existing and
Brands, With Additional Maximize Asset Value
Future Strategic Investments &
Contribution From Selected and Productivity
Acquisitions
International Brands
Growth
Pillars Strengthening of Hub /
Cluster System
Asset-light Mixed-use
Model Initiatives
Total-system-sales growth Revenues from overseas
of 15% of 50%
Measure- Improvement of margins
ments Revenues growth Net profit from overseas
of over 10% of over 55%
Corporate Information 36You can also read
