Quarterly Meeting # 2/2013

Transcription

1 Quarterly Meeting # 2/2013 1Q13 Performance & Outlook 16 May

2 The views expressed here contain some information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. Any forward looking information in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect. This presentation should not be relied upon as a recommendation or forecast by The Erawan Group PLC. Nothing in this release should be construed as either an offer to sell or a solicitation of an offer to buy or sell shares in any jurisdiction ERAWAN. All rights reserved.

3 Quarter Highlight Tourist arrivals continued to expand in 1Q13 with solid contributions from all key source markets ERW Operating Income and EBITDA increased 11% while Net Profit increased 50% from 1Q12 Subscription of Erawan Hotel Growth Property Fund ( ERWPF ) completed with strong demand from institutional and retail investors. Capital Gain THB 860 mm to be booked in 2Q13 Mercure ibis Siam fully opened while new hotel developments progressed as planned ERAWAN. All rights reserved.

4 Agendas 1 Industry Update 2 Performance Review 1Q13 3 Strategy Update 4 Financial Outlook 5 Q & A ERAWAN. All rights reserved.

5 International Tourist Arrivals Continued to Expand from Record-high in 2012 (Unit in millions arrivals) 19% Q07 1Q08 1Q09 1Q10 1Q11 1Q12 1Q13 Source : Department of Tourism as of Mar ERAWAN. All rights reserved.

6 Healthy Growth across Key Source Markets with the Highest from RIC 1Q13 Weight RIC 1Q13 3Y Y-Y CAGR East Asia 53% 28% 19% China 16% 93% 51% Europe 31% 10% 11% Russia 9% 26% 40% The Americas 5% 9% 8% South Asia 5% 16% 9% India 4% 18% 11% Oceania 4% 6% 8% Middle East 2% 1% 3% Africa 1% 7% 5% Grand Total 100% 19% 14% Source : Department of Tourism as of Mar ERAWAN. All rights reserved.

7 Growth Perspective International Arrivals On the Rise from Global Mega- trends and Thailand Competitive Advantage Millions 24.5 Millions 10% 30.0 Millions 12% CAGR Source: Department of Tourism ERAWAN. All rights reserved.

8 Domestic Traveling Continue to Expand on the Continue to Expand on the Back of Solid Domestic Economic Domestic Traveling VS GDP GDP Forecast Millions Trips ,093 7,845 8,525 Domestic Tourist Trips 9,080 9,042 GDP (Billions) 10,105 10,540 11,215 11,787 14,000 12,000 10,000 8, % 2013E 80 6, , F Domestic traveling have been outgrowing the nation GDP for the past 5 years. 2,000 (0) 5.0% 3Y Target Source : Office of the National Economic and Social Development Board and Department of Tourism ERAWAN. All rights reserved.

9 Agendas 1 Industry Update 2 Performance Review 1Q13 3 Strategy Update 4 Financial Outlook 5 Q & A ERAWAN. All rights reserved.

10 Core Performance Summary Core Performance Continued to Expand 1Q13 Group Operating Income 11% Revenue by Business Hotel - Luxury BKK 1% * Hotel - Luxury Resort 22% Hotel - Midscale 25% Hotel - Economy 30% Rental Properties 16% EBITDA Net Profit 11% 50% * Due to decrease in F&B Revenue in Hotel Luxury BKK from abnormally high1q ERAWAN. All rights reserved.

11 Room Revenue Solid 21% Expansion with Growth from All Segments Contribution RevPAR Growth (Y-Y) Y) Group-wide Organic * Luxury BKK 39% 8% 8% Luxury Resort 10% 33% 33% Midscale 22% 4% 21% Economy 29% 21% 20% Room Revenue 100% 21% * Exclude Mercure and iibis Bangkok Siam ERAWAN. All rights reserved.

12 Room Revenue Healthy Growth Witnessed across Key Source Markets Country of Residence 1Q13 Contribution 1Q13 Y-Y United States 12% 16% Thailand 9% 15% RIC - Russia 9% 36% - India 4% 28% - China 9% 97% East Asia (ex China) 23% 24% Europe (ex Russia) 19% 14% Middle East 6% 7% Oceania 5% 22% Room Revenue 21% ERAWAN. All rights reserved.

13 Our F&B Portfolio Banquet Space 2,442 sqm. 1,302 sqm. 120 sqm. 525 sqm. 249 sqm. 838 sqm. 146 sqm. 762 sqm. Food Outlets Dining Room Spasso Tables You & Mee Erawan Bakery Erawan Tea Room Breezeway Bar 494 Marriott café New York Steakhouse Tsu Nami Man-Ho BB-Co Lobby lounge bar Sake Bar Manhattan Bar Banana Leaf Tapas Pool Bars TawaNN Tonsai My Grill Z-Bar Pool Bar MoMo Café MoMo Bar Café G Flow Terrazzo Havana Bar Splash The Eight Pool Bar Lobby Bar Taste Lobby Bar ERAWAN. All rights reserved.

14 F&B Revenue Decrease in Total F&B Revenue due to decline in banquet revenue in Luxury BKK Segment from its abnormally high 1Q12 Contribution 1Q13 Growth Y-Y 1Q13 Luxury BKK 72% 7% Luxury Resort 6% 3% Midscale 12% 11% Economy 10% 19% All Segment 2% ERAWAN. All rights reserved.

15 Luxury Bangkok F&B On Rising Trend despite Y-Y Y Decline in 1Q13 from 1Q12 Baht (Millions) Q10 1Q Q12 1Q13 Banquet Outlets ERAWAN. All rights reserved.

16 Award Winning Restaurant Erawan Tea Room recognized by Lonely Planet One of the 7 World Best Afternoon Tea Venues! Claridge s, London, UK Erawan Tea Room, Grand Hyatt Hotel, Bangkok, Thailand Eastern & Oriental, Georgetown, Penang, Malaysia House, Dempsey Hill, Singapore The Strand, Yangon, Myanmar (Burma) Tea & Sympathy, New York, USA Mount Nelson Hotel, Cape Town, South Africa ERAWAN. All rights reserved.

17 Operating Income by by Segments Group-wide Organic Contribution Y-Y Contribution Y-Y Luxury BKK 49% 1% 51% 1% Luxury Resort 9% 22% 9% 22% Midscale 18% 25% 16% 14% Economy 21% 30% 20% 19% Rental 3% 16% 4% 16% Total Group 1,300 MB 11% 11% 1,225 MB 1,225 MB 7% ERAWAN. All rights reserved.

18 EBITDA by by Segments Group-wide Organic Contribution Y-Y Contribution Y-Y Luxury BKK 46% 4% 47% 4% Luxury Resort 5% 153% 5% 153% Midscale 18% 16% 18% 13% Economy 26% 36% 25% 26% Rental 5% 11% 5% 11% Total Group 444 MB 11% 11% 432 MB 432 MB 8% Note : For illustration purpose only EBITDA by Segment are calculated without taking non-property-specific expenses into account. EBITDA Total Group are inclusive of non-property-specific expenses ERAWAN. All rights reserved.

19 Profit and Loss (In Baht Millions) 1Q12 1Q13 %Y-Y Operating Income 1,168 1,300 11% Other Income % Total Income 1,175 1,305 11% Operating Expenses (775) (861) 11% EBITDA % Depreciation (158) (164) Interest Expenses (100) (98) Taxes (23) (16) Minority Interest (20) (17) Net Profit/(Loss) % ERAWAN. All rights reserved.

20 Agendas 1 Industry Update 2 Performance Review 1Q13 3 Strategy Update 4 Financial Outlook 5 Q & A ERAWAN. All rights reserved.

21 Strategy Hotel Growth Strategy Be largest listed hotel investment company by 2015 Return Enhancing Strategy Provide optimal return to our shareholder ERAWAN. All rights reserved.

22 Hotel Growth Strategy From 2 to 16 Quality Hotels with > 10,000 MB Investment in 7 Years Start with 2 Luxury hotels in Bangkok Diversification (Segment + Destination) Quality and Focus Complete the year with 16 hotels ranging from Luxury to Economy in 5 Destinations * Rebrand from Six Senses Sanctuary to The Naka Island in ERAWAN. All rights reserved >20 hotels with >5,000 Rooms

23 Mercure & ibis Bangkok Siam Mercure fully completed at the end of March 2013 Both hotels becoming ones of the top performers in our Non- Luxury portfolio Already generated Net Profit* in the first quarter of operation Note : * Exclude Pre-Opening Expense ERAWAN. All rights reserved.

24 Developing Hotels Extension Holiday Inn (Extension) Mercure Pattaya # Rooms Investment (Excl Land) 1,145 MB 660 MB Target Opening 3Q14 (Previous Target 4Q14) 4Q ERAWAN. All rights reserved.

25 Enhancing Return Strategy Erawan Hotel Growth Property Fund ( ERWPF ) Initial Invested Asset Fund Size Ibis Phuket Patong Ibis Pattaya Baht 1,831 million Asset Transfer 1 April 2013 Erawan Investment in ERWPF 20% Gain from Disposal of Asset (After deduct 20% investment in ERWPF) Net Cash Flow ~ Baht 860 million ~ Baht 920 million ERAWAN. All rights reserved.

26 Agendas 1 Industry Update 2 Performance Review 1Q13 3 Strategy Update 4 Financial Outlook 5 Q & A ERAWAN. All rights reserved.

27 2Q13 Performance Perspective 2Q12 2Q13 Y-Y # of Rooms 3,512 3,885 Occupancy 73% 75% 2% ARR 2,225 2,321 4% Hotel Revenues 953 1,004 5% Depreciation (158) (160) Interest Expenses (98) (90) Gain from Asset Monetization Program ERAWAN. All rights reserved.

28 FY 2013 Performance View 5,000 4,500 HOTEL Revenue (MB) 4,000 3,500 3,000 2,500 2,000 1,500 1, ,930 58% 3,536 69% 4,122 75% 15% 79% A 2011A 2012A 2013F 2010A 2011A 2012A 2013f Hotels Rooms 3,347 3,353 3,512 3,885 RevPAR 1,400 1,622 1,808 1, % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Note : 2012 Operating Stat exclude Mercure Siam & Ibis Siam ERAWAN. All rights reserved. Forward-looking statement based on company assumption

29 Group Financial Outlook Asset Monetization Program to further Improve Financial Return and Strength Baht Million 3,000 2, ,000 1, , E 2014E 2015E EBITDA Gain from Asset Sale Net Debt/Equities 0.0 Forward-looking statement based on company operating and investment assumptions ERAWAN. All rights reserved.

30 Agendas 1 Industry Update 2 Performance Review 1Q13 3 Strategy Update 4 Financial Outlook 5 Q&A ERAWAN. All rights reserved.