Quarterly Meeting # 2/2015 1Q15 Performance & Outlook 18 May 2015
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Executive Summary Recovery continued in 1Q15, international tourist arrival +24% Y-Y. Growth witnessed in key source markets. Operating income increase 45% in 1Q15 and expected strong growth in 2015 for both existing and new hotels Full operation for 12 new hotels opened in 2014. 4 new hotels will be opened by 4Q15 Asset Monetization program in process, expected to complete in 2015 3 2015 ERAWAN. All rights reserved.
Agenda 1 Industry Update 2 Performance Review 1Q15 3 Outlook 4 Strategy Update 5 Q & A 4 2015 ERAWAN. All rights reserved.
International Tourist Arrivals Millions 3.0 YTD 7.88 millions, +24% y-y +16% +30% +25% 2012 YTD 5.74 M 2013 YTD 7.01 M 2014 YTD 6.38 M 2015 YTD 7.88 M YoY 2014-2015 40% 2.5 30% 2.0 1.5 1.0 20% 10% 0% -10% 0.5-20% 0.0 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec -30% Source : Department of Tourism as of Mar-15 5 2015 ERAWAN. All rights reserved.
Tourist Arrivals by Quarter 2011 2012 2013 2014 2015 5.3 5.7 7.0 6.4 7.9 4.4 4.9 6.1 5.1 4.9 5.4 6.6 5.8 4.4 6.4 7.0 7.5 Q1 Q2 Q3 Q4 Source : Department of Tourism as of Mar-15 6 2015 ERAWAN. All rights reserved.
Tourist Arrivals by Source Markets 24% The Americas 4% Oceania South 3% Asia 4% Middle East 2% Africa 0% Continent YoY Growth East Asia 56% Europe 16% Europe 24% East Asia 63% The Americas 7% South Asia 16% Oceania 4% Middle East 28% 1Q15 Contribution Africa 2% Source : Department of Tourism as of Mar-15 7 2015 ERAWAN. All rights reserved.
Tourist Arrivals by Key Source Markets FY13 Weight Source : Department of Tourism as of Mar-15 FY14 Weight 1Q15 Weight 1Q15 Y-Y 1Q15 3Y/CAGR China 17% 19% 26% 96% 52% Malaysia 11% 11% 11% 71% 13% South Korea 5% 5% 5% 19% 9% Russia 7% 6% 4% 54% 11% Japan 6% 5% 5% 17% 3% Laos 4% 4% 3% 5% 1% United Kingdom 3% 4% 3% 2% 1% United States 3% 3% 3% 5% 3% India 4% 4% 3% 14% 3% Germany 3% 3% 3% 7% 5% Other 37% 36% 34% 14% 5% Grand Total 100% 100% 100% 24% 11% 8 2015 ERAWAN. All rights reserved.
Agenda 1 Industry Update 2 Performance Review 1Q15 3 Outlook 4 Strategy Update 5 Q & A 9 2015 ERAWAN. All rights reserved.
Room Revenue by Country of Residence Growth Witnessed in all Key Source Markets Country 1Q15 Contribution Y-Y China 13% 134% Thailand 13% 92% United States 11% 28% Singapore 5% 139% Hong Kong 5% 291% India 5% 94% Germany 4% 25% United Kingdom 4% 24% Australia 4% 27% South Korea 3% 76% Others 33% 16% Total Group 52% 10 2015 ERAWAN. All rights reserved.
Room Revenue Room Revenue 52% 1Q13 1Q14 1Q15 Luxury Midscale Economy Room Revenue Growth YoY RevPar Growth YoY 58% 99% 11% 58% 35% 1% 11 2015 ERAWAN. All rights reserved.
F&B Revenue F&B Revenue 38% 1Q13 1Q14 1Q15 Luxury Midscale Economy F&B Revenue Growth YoY 39% 62% 6% 12 2015 ERAWAN. All rights reserved.
Hotel Revenue Has Been Well Recovered Recovery was seen in all segments 47% 1Q13 1Q14 1Q15 Luxury Midscale Economy Hotel Revenue Growth YoY 47% 90% 10% 13 2015 ERAWAN. All rights reserved.
1Q15 Operating Income 45% 1,600 1,400 MB 47% 90% 10% N.A. 3% 1,448 1,200 1,000 1,001 800 600 400 1Q14 Luxury Midscale Economy Budget Rental 1Q15 14 2015 ERAWAN. All rights reserved.
Operating Income 1Q15 Segment Contribution Y-Y Luxury 53% 47% Midscale 23% 90% Economy 20% 10% Budget 1% N/A Rental 3% 3% 1Q15 Destination Contribution Y-Y Bangkok 64% 61% Pattaya 16% 53% Phuket 9% 21% Samui 6% 2% Huahin 2% 4% Krabi 2% N/A Other 1% N/A Total Group 45% Total Group 45% 15 2015 ERAWAN. All rights reserved.
EBITDA Moving Forward in 1Q15 81% 600 MB 500 142% 4% N.A. 5% 491 400 141% 300 272 200 100-1Q14 Luxury Midscale Economy Budget Rental 1Q15 16 2015 ERAWAN. All rights reserved.
EBITDA 1Q15 Segment Contribution Y-Y Luxury 47% 141% Midscale 25% 142% Economy 22% 4% Budget 1% N/A Rental 5% 5% 1Q15 Destination Contribution Y-Y Bangkok 63% 173% Pattaya 19% 41% Phuket 7% 47% Samui 6% 6% Huahin 2% 1% Krabi 2% N/A Other 1% N/A Total Group 81% Total Group 81% 17 2015 ERAWAN. All rights reserved.
Consolidated Profit & Loss Statement In Baht Millions 1Q14 1Q15 %Y-Y Hotel Income 953 1,398 47% Rental and Service Income 48 50 3% Total Operating Income 1,001 1,448 45% Other Income 9 9 4% Total Income 1,010 1,457 44% Operating Expenses (738) (966) 31% EBITDA 272 491 81% Share of Profit in ERWPF 5 7 ERWPF Rental Payment (28) (28) Depreciation (159) (177) Interest Expenses (86) (99) Taxes (11) (39) Minority Interest 10 (15) Net Profit/(Loss) 3 140 4,435% EBITDA Margin (%) 27% 34% 18 2015 ERAWAN. All rights reserved.
Summary of Financial Position Baht Million 16,000 Total Assets Total Liabilities & Equity ST Loan 12,000 LT Loan 8,000 Other Liabilities 4,000 Equity 0 FY2013 FY2014 1Q15 FY2013 FY2014 1Q15 19 2015 ERAWAN. All rights reserved.
TOTAL INEREST-BEARING DEBT (MB) Debt to Equity Ratio 9,000 2.9 2.7 8,000 2.6 2.5 2.4 2.3 7,000 2.1 2.1 1.9 6,000 2.0 1.8 1.7 1.7 1.5 5,000 1.3 1.3 1.1 0.9 4,000 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 1Q15 0.7 0.5 Interest-bearing Debt to Equity 20 2015 ERAWAN. All rights reserved.
Agenda 1 Industry Update 2 Performance Review 1Q15 3 Outlook 4 Strategy Update 5 Q & A 21 2015 ERAWAN. All rights reserved.
Revenue Growth from all segments 7,000 Baht Millions 6,000 5,000 4,000 3,000 35% Budget Economy Midscale 2,000 Luxury 1,000 0 2009 2010 2011 2012 2013 2014 2015F Exclude Asset Monetization Program 22 2015 ERAWAN. All rights reserved.
Agenda 1 Industry Update 2 Performance Review 4Q14 & FY14 3 Outlook 4 Strategy Update 5 Q & A 23 2015 ERAWAN. All rights reserved.
15 Hotel Development in 2015 4 Hotels to open in 2015 11 Hotels to open in 2016 24 2015 ERAWAN. All rights reserved.
Agenda 1 Industry Update 2 Performance Review 1Q15 3 Outlook 4 Strategy Update 5 Q & A 25 2015 ERAWAN. All rights reserved.
26 2015 ERAWAN. All rights reserved. Success with Integrity