"1H 2019 Performance" - Opportunity Day Dusit Thani Plc - Set
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Dusit Thani Plc. Opportunity Day “1H 2019 Performance” 2 September 2019
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
1H 2019 Recap 14
Financial Performance 24
Outlook & Guidance 28
3
Business overview
Our heritage inspires our future
Dusit Thani Bangkok, Thailand 4
DTC at a glance
Distinctly Thai yet with global reach, DTC is a leading hospitality company on a multi-year strategic
journey to deliver broadened experiences for our customers and create greater value for our
shareholders.
71 Years in hospitality business 14 Countries
271 Properties in operation* 60+ Contracts in pipeline
9 Owned hotels
26 Years in education business
24 Hotel management contracts & franchise
238 Villa management contracts
Revenue
Contribution
1H19: THB 2,695 mn Hotel Education Property Food Others**
73.6% 7.2% Development 7.9% 1.3%
As of 30 June 2019
* Dusit Thani Laguna Phuket, dusitD2 Chiang Mai and the leasehold of Dusit Thani Hua Hin are under Dusit Thani Freehold and Leasehold Real Estate Investment Trust (DREIT) of which DTC
holds a 30.02% stake. ** DREIT, Venture Capital (favstay), and Hospitality Services (Outside catering, Housekeeping on demand, Restaurant, and Hotel pre-opening),and others 5
DTC’s lodging spectrum
Offered broadened experiences for our customers
FULL SERVICE LIMITED SERVICE EXPERIENCE
Bespoke/ Branded Lifestyle/ Sharing Cruise/ Villa/
Luxury Midscale Economy Budget Residence Boutique Economy Vacation Club
*
Remark: * 9.24% Investment
= Future plan
6
Hotel & Villa brand portfolio
Cosmopolitan, Elegant, Reliable & True hospitality Niche, Discerning & Secluded privacy Smart, Contemporary & Efficient
Dusit Thani Hua Hin, Thailand Dusit Devarana Hot Springs & Spa Conghua, China dusitD2 Khao Yai, Thailand
Value, Friendly & Genuine simplicity Exceptional experiences with personal touch services
Thoughtful essentials,
Locally inspired,
Common areas &
Connected community
> 200 villas across
Indonesia,
Thailand, Sri Lanka,
Japan, and the
Dusit Princess Moonrise Beach Resort, Phu Quoc, Vietnam Maldives
Since Apr 2017, DTC invested 9.24% in favstay - an active and fast growing sharing economy platform for listed properties. Favstay had 44,350
property listings in 1H19. 7
DTC’s hospitality education landscape
Full range of hospitality program: Formal education (degree program), Professional class (short course/
executive course), and Management contract and continues to seek opportunities for its unique brand of
education in key destinations worldwide.
Collaboration with esteemed partners
& Consulting
Certify Body
services
Le Cordon
Bleu Dusit
Service Offering
Innovation
Dusit Thani
Hospitality
Resource
Centre
Excellence Center Integrated
Informal Short Courses Hospitality
& Int’l Expansion support Institute
L&D
Dusit Thani College
Academy
Dusit Hospitality
Management
Hospitality College College, Manila
Thailand ASIA The World
Recognition Level
8
Mixed-use project: Dusit Central Park
THB 36.7 bn project covering 440,000 sq.m. of prime estate on the corner of Silom and Rama IV road
Dusit Thani Dusit Residences Sky Roof
Central Park Central Park Offices
Bangkok Hotel & Dusit Parkside Park
• The new flagship of Dusit • The world’s class retail • The best in class office • Super luxury Residences • Thailand’s biggest roof park
International shopping center with building with LEED certified with two concepts under • 11,000 sq.m. (7 rai) green
• 5-star park view hotel interactive retail in CBD Bangkok Dusit Residences (Refined, space on top of retail
• Elegant design embracing experiences • Fully equipped with Timeless, Exclusive) and podium
Thai heritage and identity • Iconic brands functions for intelligent Dusit Parkside (Elegant, • Open space for sports,
• Digital technology services • Variety of food around the building Contemporary, Curated) leisure activities and
• 39 Floors 49,000 sq.m. world • 45 Floors 92,000 sqm. • 69 Floors 49,000 sq.m. Bangkok events
• 6 Floors 78,000 sq.m. (Net saleable area)
Opening target
Hotel 1H 2023
Retail & Office 2H 2023
Residence 1H 2024
Remark: Excluding parking area 9
Dusit Foods
“Bringing ASIA to the World” Be Natural | Be Organic | Be Healthy | Support Local Community
Investment
Rationale
DTC
99.99%
Dusit Foods
25.977% 90.0% 51.0% 51.0%
10.0%
NR Instant Produce* Dusit Gourmet Epicure Catering** Dusit Real Foods***
Food retail to distribute Dusit International school Will open and operate dining outlets within
branded premium products to catering Virgin Active Fitness Clubs in Bangkok as
Food manufacturer domestic & international markets well as expand to non-Virgin Active Clubs
and exporter where customers will enjoy easy access to
New brand “Khong Thai”
launched in end-May 2019 healthy meals, snacks and shakes.
* Invested since March 2018
** New investment in January 2019; 19% additional stake will take place in early 2020
*** New JV in July 2019 10Key milestones
Dusit Thani
College
Brand established
1948
in Thailand
The 1949 1966 1970 1975 1987 1988 1990 1993 1995 1996 1997 2001
Princess The Princess DTC Dusit Thani Phuket Pattaya HuaHin Korat Chiang Mai Bangkok Manila Dubai
Co., Ltd. Bangkok Bangkok
Hotel
Dusit Thani
DTCPF Hotel School
2006 Overseas asset light
expansion
Chiang Mai
2007 2010 2012 2013 2014 2015
Cairo Maldives China Nairobi Guam
Abu Dhabi Krabi
Expand & Diversify
2016 beyond hotel
Dusit Foods
• Balancing portfolio
2017 Vimarnsuriya 2018 & 2019
China Rebranding Unveiled • Strengthening
Khao Yai Colours (Mixed-use hospitality Cebu “Dusit Khong Thai foundation
Divested Phu Quoc
Dubai International project, education Dusit Dusit Davao Central Dusit Real
Dusit Gourmet China
Bangkok) Princess Hospitality Park” Foods
Korat Krabi Services Doha
Thimphu Bangkok Grace Me
Davao Dubai
As of 23 August 2019 11Strategic direction
With strong background in the hotel management and education business, DTC has entered a new
chapter with multi-year plan under “Balance, Diversify, and Expand” strategy…
Long term target 50:50 domestic/overseas revenue with balance of
Balance
asset light vs capital investment
Diversify 10% contribution from new adjacent business
Non-hotel:
Expand Double number of rooms in operation to 14,000 keys in 2021
… by strengthening 5 key pillar foundations.
12Strategic roadmap
• Set new strategic direction • Realize revenue from • Completion of new mixed-use
• Develop new Vision/Mission/ new investments project and new iconic flagship hotel
Values • Integration of hospitality • More revenue contribution from
• Focus on key priorities and education business new investments
• Double no. of keys • Balance of revenue contribution
worldwide from Thailand and overseas
131H 2019 Recap
Dusit Devarana Hot Springs & Spa Conghua, China 141H19 Recap
Jan Dusit Thani Bangkok hotel closure Continued to expand in food business Le Condon Bleu Dusit Culinary relocation
Acquired 51% in
A market leader in the education catering business
Relocated to Zen Tower, CentralWorld Shopping
Centre, Bangkok, where it can accommodate an
additional 600 students per year.
Apr “Dusit Central Park” project unveil Sale of Dusit Thani Maldives to DREIT
THB 36.7 bn mixed-use project covering
440,000 sq.m. of prime estate on the
corner of Silom and Rama IV road
Dusit Thani Laguna Phuket
dusitD2 Chiang Mai
The leasehold of Dusit Thani Hua Hin
Received the shareholder approval on the selling of Dusit Thani Maldives to DREIT as part of
DTC’s strategy for asset portfolio efficiency and strengthen financial capability
• Transaction worth not less than THB 2,304 mn expected to be completed in 3Q19.
• DTC will continue to obtain revenue from the property, and receive dividends from DREIT.
• Currently, the process remains on-track.
151H19 Recap (Cont’d)
Apr Successful investment of 2 new hotels in Thailand
Dusit Suites Hotel Ratchadamri Bangkok ASAI Chinatown
Bangkok, Thailand Bangkok, Thailand
97 rooms 224 rooms
• Hotel and long-term stay project • Mixed-use project with hotel and retail mall
worth around THB 740 mn. of which DTC will develop and manage only
• Approx. 19 years sublease hotel project worth around THB 954 mn.
• Opened in May 2019 • Approx. 32 years sublease
• Plan to open in 1Q20
May THB 0.17 per share Jun Changed in investment
for 2018 performance Reduced investment in Saladang Property
Management Co., Ltd. to 0% (from 14%).
Dividend policy: Not less than 50% of net profit
161H19 Recap (Cont’d)
New hotel opening
1Q19
Cebu, Philippines Davao, Philippines
Dusit Thani Mactan Cebu dusitD2 Davao
271 rooms 60 rooms
2Q19
Doha, Qatar Dubai, UAE Bangkok, Thailand
Dusit Doha Hotel Dusit Princess Residences Dubai Marina Dusit Suites Hotel Ratchadamri Bangkok
261 rooms & 96 apartments 146 rooms 97 rooms 17Hotel in operation
Hotel Name Location # Rooms Hotel Name Location # Rooms
Dusit Thani Pattya Thailand 457 Royal Princess Larn Luang Thailand 167
Dusit Thani Manila Philippines 468 Pathumwan Princess Thailand 445
Dusit Thani Maldives Maldives 94 Dusit Thani Guam USA 421
Dusit Princess Chiang Mai Thailand 198 Dusit Thani Krabi Thailand 240
Dusit Princess Srinakarin, Bangkok Thailand 198 dusitD2 Khao Yai Thailand 79
Dusit Thani Hua Hin Thailand 296 Dusit Thani Dubai UAE 321
Dusit Thani Laguna Phuket Thailand 252 Dusit Thani Lakeview Cairo Egypt 449
dusitD2 Chiang Mai Thailand 130 Dusit Thani Abu Dhabi UAE 527
Dusit Suites Hotel Ratchadamri, Bangkok Thailand 97 dusitD2 Nairobi Kenya 101
Owned hotel 2,190 dusitD2 Kenz Dubai UAE 237
dusitD2 Fudu Binhu (Changzhou) China 88
Dusit Devarana Conghua (Guangzhou) China 133
33 hotel properties with 7,556 rooms in 11 countries Dusit Thani Dongtai (Jiangsu) China 155
Dusit Thani Fudu Qingfeng (Changzhou) China 349
Dusit Princess Moonrise Beach Resort, Phu Quoc Vietnam 108
dusitD2 Ao Nang Resort, Krabi Thailand 173
dusitD2 Thimphu Bhutan 83
The Beach Club at Lubi Plantation Island Managed by Dusit Philippines 18
Heritage Villas Zhouzhuang Managed by Dusit Jiangsu 33
dusitD2 Society Hill Tianjin 405
Dusit Thani Mactan Cebu Philippines 271
dusitD2 Davao Philippines 60
Dusit Doha Hotel Qatar 357
Dusit Princess Residences Dubai Marina UAE 146
Managed hotel 5,366
As of 30 June 2019 18Hotel & Villa portfolio
As of June 2019, DTC operated 271 properties with 8,579 rooms* in 14 countries
Thailand Overseas
Owned
Pattaya
Hua Hin** Chiang Mai Manila
Laguna Phuket** Bangkok (Srinakarin) Maldives
Bangkok (Ratchadamri) *** Chiang Mai**
Conghua (Guangzhou, China)
Nairobi (Kenya)
Kenz Dubai (UAE)
Fudu Binhu (Changzhou, China)
Krabi Pathumwan Princess Guam (USA) Yarkay Thimphu (Bhutan)
Royal Princess Larn Luang Dubai (UAE) Society Hill (Tianjin, China)
Davao (Philippines) ***
Managed
Lakeview Cairo (Egypt)
Abu Dhabi (UAE)
Dongtai (Jiangsu, China)
Fudu Qingfeng (Changzhou, China) Moonrise Beach Resort
Phu Quoc (Vietnam)
Khao Yai Phuket (42 villas) Heritage Villas Zhouzhuang, Dubai Marina (UAE) ***
Ao Nang Resort, Krabi Koh Samui (21 villas) Managed by Dusit (Jiangsu, China)
The Beach Club at Lubi Plantation Island,
Managed by Dusit (Davao, Vietnam) Indonesia (144 villas)
Sri Lanka (5 villas)
Mactan, Cebu (Philippines) ***
Maldives (8 villas)
Doha (Qatar) ***
Japan (18 villas)
* Include Elite Havens; ** Under Dusit Thani Freehold and Leasehold Real Estate Investment Trust (DREIT) of which DTC holds a 30.02% stake; *** Opened in 1H 2019 19Growing global presence
Will continue to expand the business through asset light initiative and lease model. Coverage will increase
from 14 countries to 20+ countries and from 8,579 rooms to 20,000+ rooms by 2023.
UK
Japan
* * *
* *
Australia
* = In operation
As of 30 June 2019
* * * * * * * * 20Recent developments
Jul New JV set up: Dusit Real Foods Jul-Aug The opening of Baan Dusit Thani
A joint venture between Dusit Foods (51%) and Real Foods (Pty) Dusit Gourmet
Ltd. (49%) to operate Real Foods store to sell heathy food
products with strategic partnership with Virgin Active Thailand.
The first Real Foods store in Bangkok is scheduled to open at
Virgin Active Fitness Club 101 in October 2019.
About Real Foods: Real Foods (Pty) Ltd. is a multi-brand food group dedicated
to natural food, innovation, social responsibility and integrity. Based in South Inside Dusit Gourmet
Africa, Real Foods is at the forefront of the global trend towards health and
wellness, and aims to be the leader in natural food. The group is passionate A new food destination at Saladang started the opening of
about building strong, natural food brands that are leaders in their categories. Dusit Gourmet in July and Benjarong restaurant in August.
Thien Duong restaurant and banqueting area is scheduled
Real Foods was founded by Dean Kowarski in 2013. The company lists KAUAI, to be opened in September.
NÜ Health Café, Schoon, Highveld Honey & Brother Bee in its portfolio.
21Recent developments (Cont’d)
Continued development of Dusit Hospitality Management College (DHMC)
Unique education concept of fully integrated hotel – college
• High tech – high touch
• Relevant, industry-driven learning
• Job ready graduates
• Already opened DHMC in August 2019.
• Expect to open dusitD2 The Fort Manila hotel at end-2019.
22Dusit Central Park progress
• Currently, the company is preparing and obtaining necessary permits for the construction as originally planned.
• Sales and marketing strategy of the project’s residences is consistently monitored and realigned with prevailing market situations.
The sales of the residences is expected at end-2019.
• The opening target of the project remains the same. The new Dusit Thani Bangkok hotel, shopping complex and office buildings
are planned to be opened in 2023 while residential building is planned to be opened in 2024. 23Financial performance
dusitD2 Khao Yai, Thailand 24Revenue contribution is diversified as planned
Revenue contribution
2018 1H19 Higher revenue contribution from food
Others business thanks to the new investments
1.3% • This is in-line with the company’s
Others diversification strategy that target
Food
9.2% THB Hotel 7.9% THB Hotel 10% revenue contribution from
5,565 mn 83.2% 2,695 mn 73.6% new adjacent business.
Education
• Tourism industry shown soften
7.6%
Education trend as well as the company’s
7.2% hotel business outlook.
EBITDA contribution More balance of EBITDA mix
2018 1H19
• EBITDA contribution is more
balanced with higher contribution
Others
Others
from food business which provide
6.3% greater profitability.
8.1%
THB THB Hotel
Education 1,000 mn 372 mn
Hotel 77.7%
4.3% Food
89.4% 11.0%
Education
3.0%
Remark: REIT data is included in hotel business 25
Others = Gain on sales of investment, office rental income, interest income, dividend income, share of profit from investment by equity method, and othersHotel key statistics (excluding Elite Havens)
1H18: 33 properties
• Proportion of owned hotel rooms
declined due to the closure of Dusit Thani
Bangkok hotel.
• 1H19 RevPar remained flat yoy despite
the fact that overall hospitality sector has
been pressured by economic situation
59% 62% 63%
71%
and strong Thai Baht that adversely
41% 38% 37%
29% impacted number of tourist arrivals and
spending.
in 11 countries
Owned Hotel Statistic
Remark: For comparison purpose, the figures in 2017 exclude Dusit Princess Korat (divested at end-2017. Figures in 2018 and 2019 exclude Dusit Thani Bangkok (closed in 1Q19)
and Dusit Suites Hotel Ratchadamri Bangkok (new investment in 2Q19). 26Contraction with progression
• 1H19 revenue declined by 4.5% yoy due to the closure of Dusit Thani Bangkok hotel as the company made way for ground breaking of the
mixed-use project at the former Dusit Thani Bangkok hotel. Expect to see full revenue contribution from new businesses in 2H19.
• Besides, the company had to record one-off expenses from Dusit Thani Bangkok hotel closure, expenses in preparation for the upcoming
projects, and extra provisioning of employee benefit expenses in compliance with the new Labour Protection Act.
Total Assets Total Liabilities Total Equity
11,573 12,770
9,980
9,033
6,837 5,881 6,078 5,933
5,495 5,354
3,679 4,099
2016 2017 2018 1H19 2016 2017 2018 1H19 2016 2017 2018 1H19
Non-current Current Non-current Current Non-controlling interest Total
Equity attributable to owners of the parents
Remarks: Non-core items are gain on sales of available investment for sales in 2018, impact of Dusit Thani Bangkok hotel closure in 2019 and additional provision for employee benefit
as per the new Labour Protection Act in 2019. 27Outlook & Guidance
Dusit Thani Maldives, Maldives 282019 Outlook & Guidance
• Cautiously plan for hotel business outlook as Thailand remains under pressure of the
global trade war and appreciation of Thai Baht that put a dent on the tourist arrivals
especially from China, UK and Russia.
• Expect to open 10 new hotels including lease model to add around 2,000 keys.
• Diversify risk and expand through overseas hotel focused
• New service model through Elite Havens and favstay
• Improve the efficiency of asset portfolio by selling Dusit Thani Maldives to DREIT*
• Started new hospitality services, such as Dusit on Demand and Dusit Events
• Soft opening first phase of Baan Dusit Thani: Dusit Gourmet and Benjarong.
• Opened Dusit Hospitality Management College (DHMC), the first Dusit Hospitality College
in Manila, with the curriculum designed to integrate students’ learning experiences
through practical skill training with dusitD2 The Fort Manila hotel.
• Continue to focus on Non-degree & Short-course
• Revitalize specialized hospitality focused programs
• Synergize more with hotel and food business
• Started engage new segment of students targeting mid-career in hospitality business
Remark:
* Transaction is expected to complete in 3Q19 292019 Outlook & Guidance (Cont’d)
• NRF’s IPO plan remains on-track.
• Expect to continually grow, especially from Epicure Catering (overseas expansion) and
Dusit Real Foods (open food store in October 2019).
• Potential overseas expansion, reach out to the world through our high quality products
by developing new brand under Dusit umbrella, Khong Thai
• Mixed-use project development, Dusit Central Park, is on progress.
• Exploring residence and wellness opportunity with strategic partners
• Expect total revenue growth despite Dusit Thani Bangkok closure
• Maintained estimated CAPEX of THB 1,140 mn*
• THB 245 mn for hotel renovation**
• THB 245 mn for ERP, software, hotel and education capex
• THB 650 mn for mixed-use project
Remark:
* Excluding new investment
** Dusit Thani Pattaya, Dusit Thani College, Dusit Princess Chiang Mai and Dusit Princess Srinakarin Bangkok 30Maintains long term outlook
• Realize revenue from new • Completion of new mixed-use project
investments and new iconic flagship hotel
• Integration of hospitality and • More revenue contribution from new
education business investments
• Double no. of keys worldwide • Balance of revenue contribution from
Thailand and overseas
# of new managed properties per year 10-12 10
New residence Pre-sales at end 2019 Completed in 2024
Food business growth (CAGR) 20-25% 15-20%
Core EBITDA margin 18-20% 20-25%
Average CAPEX per year* (THB mn) 1,000 2,500
Remark: Excluding new investment and hotel renovation under DREIT 31Dusit Thani Dubai, UAE 32
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