Resilient Future March 2021 - SET
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Building a
Resilient Future
Opportunity Day
30 August 2021
March 2021
Disclaimer
The material contained in this document has been prepared by Dusit Thani Public Company Limited (“DUSIT”) and may contain forward looking statements
which includes but not limited to statements regarding our intent, belief, current expectation in respect of DUSIT’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, DUSIT 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
DUSIT at a glance 4
1H 2021 Recap 9
Financial performance 12
Outlook 17
Dusit Thani Laguna Singapore 3
DUSIT at a glance
ASAI Chinatown Bangkok, Thailand 4
Welcome to the
World of Dusit
Distinguished Asian hospitality group with
Thai heritage.
70+ 16
Years in hospitality Countries across 4
business continents
320+ 45+
Properties in key Hotel management
strategic locations projects in pipeline
11,600+
Keys in operations
As of 30 June 2021
5
Our Strategy
With strong background in the hotel management and education business, DUSIT has entered a new chapter
with multi-year plan since 2016.
BALANCE EXPANSION DIVERSIFICATION
Achieve 50:50 Double number of rooms in Achieve 10% revenue
domestic/overseas revenue operation to 14,000 by contribution from
with a balance of asset-light 2021 and expand across adjacent lines of
and capital investment the lodging spectrum business by 2024
2016 2019
Others
25.3%
THB Hotel THB Hotel
5,425 mn 88.7% 6,117 mn 61.7%
Others Food
2.5% 6.6%
Education Education
8.7% 6.4%
6
Our Business
Distinctly Thai yet with global reach, DUSIT is a leading hospitality company on a multi-year strategic journey
to deliver broadened experiences for customers and greater value for shareholders
1H 2021 40.0% 8.5% 13.0% 11.2% 27.3%
Revenue
Contribution
Hotels & Resor ts Hospitalit y & Proper t y Foods Others
Education Development
• 70+ Years in hospitality business • 28 Years in education business • 2 Flagship projects: • 70+ Years in hotel-based • 3 adjacent lines of businesses,
• 339 properties in operations, • 13,562 graduate students • Dusit Central Park - THB 46 bn restaurants and catering for including REIT with invested
covering 15 countries • Full range of renowned landmark mixed-use JV project large scale events assets in Thailand and
• Of which 10 owned hotels, 35 hospitality programs from located at the heart of Bangkok • 3 Investments & 2 developments international tourist
HMA and 284 villas management degree program, world-famous • Hampton Sriracha – THB 1.4bn across food supply chain destinations, standalone
contracts training to short courses high-end condominium JV • Increasing revenue contribution restaurant, spa, and catering
• +45 Contracts in pipeline project in EEC area to DUSIT group and housekeeping service
Dusit Hospitality
Services
Dusit Thani
Excellence Centre
(DTEC)
As of 30 June 2021
7
Long-term Strategic Roadmap
8
1H 2021 Recap
dusitD2 Khao Yai, Thailand 9
Thriving in the new normal
FINANCIAL MODEL
1 Asset optimization
and financial
resilience
BUSINESS MODEL
2 Recover business
and reimagine our
services
ORGANIZATION
MODEL
3 Accelerate positive
transformation –
Business and IT
C O L L A B O R AT I O N I N N O VAT I O N CONTRIBUTION
10DUSIT’s Response to COVID-19
1 FINANCIAL MODEL Asset optimization and financial resilience 2 BUSINESS MODEL
Recover business and reimagine our services
with collaboration, innovation, and contribution
1Q21 2Q21 Operation 1Q21 2Q21
Revenue driven by overseas hotel operation Innovative & Collaborative marketing schemes: Stay & Wander; Stay
in Good Health; Back to Paradise and introduced ‘Devarana Wellness’
Higher food revenue due to the expansion of international school
Financials catering business in Vietnam Pop-up food shop in front of hotels, food box for hospitel/ home
Cost containment & Liquidity preservation: 20% YoY fixed cost saving Hotel
isolation, and delivery
in 1H21, CAPEX reduction, rental fee reschedule, and cash flow
management Expanded into e-commerce by launching dedicated stores on the
popular LINE Shopping and LazMall platforms
Asset Gain on investment reclassification, gain on measurement of
other financial assets, gain on sale of other long-term Prepared hotel & villas for ‘Phuket Sandbox’ and ‘Samui Plus’
optimization
investment, arrangement fee income Plan to open 5 new managed hotels in 2021. Opened 2 white label
properties in Thailand (Mar) and Guam (Apr)
Postponed JV with Metro Pacific Investments Corporation
Investment Postponed Elite Havens luxury villa management expansion plan Temporary closure of schools in Jan and April until now as per the
to Australia government order. On-line course for Dusit Thani College.
Education
3 ORGANIZATION
MODEL
Accelerate positive transformation – Business and IT Temporary closure of international school catering business in
Thailand & Vietnam Opened a flagship stand
alone store “Kauai”
Organizational transformation Food
Reshape organization structure Dusit Central Park: Completed piling work & started working on the
Business & Re-enhance people capability basements of hotel and residences; Private Viewing sales of the
People Re-engage employee experience & integration residences to close more than 30% of the saleable areas
Reform process & system enablement
Property
development The Hampton Sriracha: Continued the construction and launched
Uplift companies core operating systems: sales activities with 71% of unit sold up until June 2021
Technology
Back office (ERP), Front-end (CRM), and Data Platform
11Financial performance
Dusit Thani Maldives 12Domestic challenges amidst COVID-19 wave 3
Revenue contribution
1H20 1H21 • Global tourism industry remained affected by COVID-19
Others epidemic. Domestic tourist demand dropped sharply in 2Q21 as
9.3%
a result of the 3rd wave of COVID-19 in Thailand since April 2021.
Property
Others Hotel The number of international tourist arrivals to Thailand was also
Hotel 27.3% 40.0%
13.9% THB THB very minimal due to the government policy on foreigner entry
58.7%
1,646 mn 1,898 mn
restrictions.
Food
8.0% • 1H21 total revenue increased 15% YoY thanks to higher
Education
Education Property
8.5%
revenue from food, property development, and other businesses.
13.0% Food
10.0%
11.2% This resulted from DUSIT’s strategic direction to grow business
through diversified investment in food and property development
businesses in previous years.
Total revenue EBITDA • Lower net loss and improving EBITDA in 1H21 due to gain on
THB mn THB mn sales of investment in associates, gain on measurement of other
financial assets, strategic asset optimization, the expansion of
international school catering business in Vietnam, and disciplined
241
242
440
500
focus on cost containment. DUSIT reported a net loss of THB 302
34
1,262
1,031
1,311
1,646
1,898
mn in 1H21 and EBITDA of THB 500 mn compared to a net loss
384
643
587
-53
-45
-207
of THB 535 mn and EBITDA of 34 mn in 1H20.
1H20
1H21
1Q20
2Q20
3Q20
4Q20
1Q21
2Q21
1H20
1H21
1Q20
2Q20
3Q20
4Q20
1Q21
2Q21
Remark: REIT data is included in hotel business
2020 Others = Arrangement fee income, gain on investment reclassification and gain on sales of investment, gain on step up acquisition, gain on capital reduction of subsidiary, revenue from Dusit
Hospitality Services and Baan Dusit Thani, interest income, FX gain, share of profit from investment in associates and JV, and others
2021 Others = Gain on measurement of other financial assets, gain on sale of other long-term investment, arrangement fee income, interest income, FX gain, share of profit (loss) from investment in
associates and JV, and others 13Hotel key statistics (excluding Elite Havens)
1H21: 45 properties No. of Rooms
10,204 10,500
• Managed 2 new white label properties (one in
8,363 Thailand and one in Guam)
6,834 7,181 7,150
• 1H21 RevPar dented by the 2nd & 3rd wave of
COVID-19 in Thailand. However, owned hotel
occupancy rate in overseas continued to pick up
59% 62% 63% 76% 77%
74% YoY and QoQ with an average occupancy rate
41% 38% 37% 24% 23%
26%
of 76% in 1Q21 and 2Q21 compared to 58%
in 11 countries and 37% in 1Q20 and 2Q20, respectively.
2016 2017 2018 2019 2020 1H21
Owned Managed
Occupancy Rate Avg Daily Rate RevPar
Owned Hotel
77%74% THB THB
72%73%
58%
36% 37%32% 39%
30% 32%33%
16%
3,727
3,597
3,670
3,610
3,208
3,975
2,837
4,476
2,124
2,018
2,706
3,343
2,312
2,690
2,636
2,841
2,685
1,143
1,456
2,581
1,051
1,060
918
332
597
763
1Q20
2Q20
3Q20
4Q20
1Q21
2Q21
1Q20
2Q20
3Q20
4Q20
1Q21
2Q21
1Q20
2Q20
3Q20
4Q20
1Q21
2Q21
1H20
1H21
1H20
1H21
1H20
1H21
2016
2017
2018
2019
2020
2016
2017
2018
2019
2020
2016
2017
2018
2019
2020
Remark: For comparison purpose, owned hotel stats in 2017 exclude Dusit Princess Korat (divested at end-2017). Owned hotel stats in 2018, 2019, 2020, and 2021 exclude Dusit Thani Bangkok (closed in
1Q19), Dusit Suites Hotel Ratchadamri Bangkok (new investment in 2Q19) and ASAI Bangkok Chinatown (opened in 3Q20).
14Improved EBITDA from diversification & asset optimization
Unit: THB mn
Total revenue EBITDA Net profit
4.8% 5.2% 5.2%
2.1%
400 10.00%
22.5% 26.3%
16.9% 19.7% 18.0%
5.00%
6,117 320
200
290
1,600 30.00%
267
5,425 5,570 5,565 114
0.00%
6.7%
1,400 0
20.00%
1,200
1,374 2.1% 10.00%
-200 -302 -5.00%
-535 -15.9%
-10.00%
3,320 1,099 -1,011
1,000
-400
1,000
0.00%
-15.00%
919
800
-600
1,646 1,898
-10.00%
-20.00%
600
-800
-32.5%
-20.00% -25.00%
500
400
-1,000
-30.00%
223 34
-30.00%
200
0 -40.00%
-1,200
-30.5% -35.00%
2016 2017 2018 2019 2020 1H20 1H21 2016 2017 2018 2019 2020 1H20 1H21 2016 2017 2018 2019 2020 1H20 1H21
EBITDA EBITDA margin Net profit Net margin
Total assets Total liabilities Total equity
21,861 23,480 17,896 18,882 5,881 6,078 5,905
5,354 4,942 4,599
14,237
9,033 9,980 11,573 8,332
5,495
3,679 4,099
2016 2017 2018 2019 2020* 1H21 2016 2017 2018 2019 2020* 1H21 2016 2017 2018 2019 2020* 1H21
Non-current Current Non-current Current Non-controlling interest Total
Remark: * = Restated due to change in the accounting policy regarding measurement after initial recognition of investment property from cost model to fair value model in 1Q21
REIT data is included in hotel business
15Higher gearing but remained under covenant
• Interest bearing debt increased significantly since 2020 due to the accounting adoption of TFRS 16 (Lease liability) at end-2020.
• As of 30 June 2021, IBD excluding lease liability to total equity equals 1.31 times which remained below DUSIT's policy of not
exceeding 1.50 times, and debenture covenant of not more than 1.75 times.
Leverage Ratio Interest Bearing Debt (IBD) IBD Repayment Schedule
THB mn
13,578 13,660
2.98x
2.76x
2022
7,598 7,673 36%
2023
5,986 6%
1.22x 1.31x
4,459 42% 2024
0.67x 2021
17% 35% 7%
0.29x 0.33x
5%
36% 2025
onwards
2017 2018 2019* 2020* 1H21 2019 2020 1H21 1H21 15%
excl.TFRS16 THB 3,148 mn
IBD excl. TFRS 16 to Total equity P/N CP of LT-Loan
IBD to Total equity CP of Debenture LT-Loan
Debenture Lease liability
Remark: * = Restated due to change in the accounting policy regarding measurement after initial recognition of investment property from cost model to fair value model in 1Q21
16Outlook
Dusit Devarana Hot Springs & Spa Conghua , Guangzhou, China 17Impact of the COVID-19 pandemic on global tourism
• All global regions hit hard with 87% fall in international tourist arrivals in January as COVID-19 IMPACT IN 2020
compared to 2020
• Asia and the Pacific recorded the largest decrease (-96) due to the highest level of INTERNATIONAL ARRIVALS
73%
travel restriction in place.
Decline by
1
Fewer Tourists (Billion)
INTERNATIONAL
TOURIST RECEIPTS
LOSS
(USD Trillion) 1.1
ECONOMIC LOSS
2
In World GDP
(USD Trillion)
SOURCE: UNWTO November 2020Travel & Tourism Climate
GDP (%) International Tourist Arrivals (Million persons)
2019 2020 Forecast 2021 2019 2020 Forecast 2021
2.3 to (6.1) 0.7 to 39.8 to 6.7 to 3.0
Revenue from Tourism (Trillion baht) Domestic trips (Million trips)
2019 2020 Forecast 2021 2019 2020 Forecast 2021
3.0 to 0.8 to 0.67 130 to 90.5 to 90
Source: Bank of Thailand (August 2021) and TAT (July 2021)Our view on the post COVID-19 hospitality landscape
More A balanced Cross Industry New Hygiene, More Greater Wellness &
consolidation of portfolio of Collaboration Safety & Technology Sustainability & holistic health
hotels owned, leased Security Driven Local experiences
and managed measures Connection
models
20Our Ultimate Growth Strategy Framework
BALANCE Model
G al
Strategy
COLLABORATION
EXPAND CONVENIENCE
EXPERIENCE
INNOVATION
DIVERSIFY VALUE CONTRIBUTION
Service Locality Well-being Sustainability
Dusit Graciousness2021 Outlook
Hotel business will take longer to recover to the pre-COVID-19 Plan to grow food business from both
levels than previously expected. The continued recovery of
existing business and future partnerships.
tourism business depends mainly on the effective control of
the epidemic and the vaccination rate
• Expect low occupancy rate in provincial areas such as Chiang Mai,
Food
Hotel
Pattaya and Hua Hin as well as Bangkok except for ASQ hotel and a • International school catering business have been affected by the
half-long stay hotel that manage to have decent occupancy rates under temporary closure of schools as ordered by the government due
current circumstances. to the new waves of COVID-19 outbreak in Thailand and in
Vietnam. Cost controlling has been implemented to mitigate the
• Overseas hotel occupancy continue to outperform domestic due to rising impact of declining revenue during the period of inactivity.
vaccination rate to deter new infections. July occupancy rate continued
to be good MoM both in the Middle East, Guam, Maldives, the • The healthy food business under Kauai brand already opened a
Philippines and China. new flagship store in June. Expects the business outlook to
improve when the government relaxes the lockdown measures
Education business has been affected by COVID-19 to allow dining at the restaurants.
• Schools have been closed since April until now. Dusit Thani College
has changed its teaching and learning model to online with plan to
reopen the school in 4Q21. Liquidity preservation put in place
Education • The Company still plans to launch the “Food School” project around
4Q21 in response to the trend of increasing demand from those who • Successful issuance of the new senior unsecured debentures
are interested in culinary arts and new food business entrepreneurs in worth THB 1,000 million in July 2021. The proceeds from the
the future.
new debentures will be used to refinance the existing
Dusit Central Park - a mixed-use project JV with Central Pattana debentures coming due in September 2021.
• Completed piling work & started working on the basements of hotel and
• Successful sale and manage-back Dusit Princess Chiang Mai
residences; Sales of residence is by appointment with Private Viewing.
hotel. Following the completion of the transaction in mid-August
Current sales are close more than 30% of the saleable areas
2021, the hotel will be continued to be operated by Dusit
Property The Hampton Sriracha by Origin and Dusit - a condominium PV International under the hotel management agreement for 10
development project with Origin Property years with the option to extend for another 5 years. Gain on
• Remained under construction with 71% of units sold up until June 2021. asset sales will be booked in 3Q21.
Plan to complete the project for transfer in 2023. 22Q&A Dusit Thani Guam Resort, USA 23
You can also read
