1H 2019 Performance 2 September 2019 Disclaimer The material - - PowerPoint PPT Presentation

Opportunity Day

“1H 2019 Performance”

2 September 2019

D u s i t T h a n i P l c .

2

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.

Ag Agen enda

Business Overview 4 1H 2019 Recap 14 Financial Performance 24 Outlook & Guidance 28

3

Page

4

Business overview

Our heritage inspires our future

Dusit Thani Bangkok, Thailand

DTC a C at a a glance

5

71

Years in hospitality business

14

Countries

271

Properties in operation*

9

Owned hotels

24

Hotel management contracts & franchise

Contracts in pipeline Years in education business

60+ 26

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

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.

238

Villa management contracts

Hotel Education Food Others** Property Development 73.6% 7.2% 7.9% 1.3%

Revenue Contribution 1H19: THB 2,695 mn

DTC’s l s lodgi ging s spec ectru rum

6 = Future plan Remark: * 9.24% Investment

EXPERIENCE LIMITED SERVICE FULL SERVICE Bespoke/ Luxury Midscale Economy Budget Lifestyle/ Boutique Branded Residence Sharing Economy Cruise/ Villa/ Vacation Club

*

Offered broadened experiences for our customers

Hot Hotel & & Villa b brand p por

• rtf

tfol

• lio

io

7

Niche, Discerning & Secluded privacy Smart, Contemporary & Efficient Value, Friendly & Genuine simplicity

Dusit Thani Hua Hin, Thailand Dusit Devarana Hot Springs & Spa Conghua, China dusitD2 Khao Yai, Thailand Dusit Princess Moonrise Beach Resort, Phu Quoc, Vietnam

Exceptional experiences with personal touch services

Cosmopolitan, Elegant, Reliable & True hospitality

Thoughtful essentials, Locally inspired, Common areas & Connected community

> 200 villas across Indonesia, Thailand, Sri Lanka, Japan, and the 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.

DTC’s h s hospitality e education l landsc scape

8

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.

Academy Certify Body & Consulting services Hospitality L&D Innovation Resource Centre Thailand ASIA The World

Recognition Level Service Offering

Hospitality College

Integrated Hospitality Institute

Dusit Thani Excellence Center Dusit Hospitality Management College, Manila Dusit Thani College Le Cordon Bleu Dusit

Informal Short Courses & Int’l Expansion support

Collaboration with esteemed partners

9

Dusit Thani Bangkok Hotel

• The new flagship of Dusit

International

• 5-star park view hotel
• Elegant design embracing

Thai heritage and identity

• Digital technology services
• 39 Floors 49,000 sq.m.

Central Park

• The world’s class retail

shopping center with interactive retail experiences

• Iconic brands
• Variety of food around the

world

• 6 Floors 78,000 sq.m.

Central Park Offices

• The best in class office

building with LEED certified in CBD Bangkok

• Fully equipped with

functions for intelligent building

• 45 Floors 92,000 sqm.

Dusit Residences & Dusit Parkside

• Super luxury Residences

with two concepts under Dusit Residences (Refined, Timeless, Exclusive) and Dusit Parkside (Elegant, Contemporary, Curated)

• 69 Floors 49,000 sq.m.

(Net saleable area)

Sky Roof Park

• Thailand’s biggest roof park
• 11,000 sq.m. (7 rai) green

space on top of retail podium

• Open space for sports,

leisure activities and Bangkok events

Remark: Excluding parking area

Mixed-use se p project: Du Dusi sit Ce Central Park

Opening target

Hotel Retail & Office Residence 1H 2023 2H 2023 1H 2024

THB 36.7 bn project covering 440,000 sq.m. of prime estate on the corner of Silom and Rama IV road

Dusit F t Food

• ods

10 99.99%

Dusit Gourmet

90.0% 25.977%

DTC

10.0%

Food retail to distribute Dusit branded premium products to domestic & international markets New brand “Khong Thai” launched in end-May 2019 Food manufacturer and exporter

Epicure Catering**

51.0%

International school catering

* Invested since March 2018 ** New investment in January 2019; 19% additional stake will take place in early 2020 *** New JV in July 2019

NR Instant Produce* Dusit Real Foods***

51.0%

Will open and operate dining outlets within Virgin Active Fitness Clubs in Bangkok as well as expand to non-Virgin Active Clubs where customers will enjoy easy access to healthy meals, snacks and shakes.

“Bringing ASIA to the World”

Be Natural | Be Organic | Be Healthy | Support Local Community

Dusit Foods Investment Rationale

Key m miles estones es

11

1948

The Princess Co., Ltd. 1949 The Princess Bangkok Hotel 1966 DTC 1970 Dusit Thani Bangkok 1987 Phuket 1988 Pattaya 1990 HuaHin 1995 Chiang Mai 1996 Bangkok 1997 Manila 2001 Dubai Chiang Mai Cairo DTCPF Maldives China Abu Dhabi Nairobi Guam Krabi Vimarnsuriya (Mixed-use project, Bangkok) Rebranding hospitality education Colours International Divested Dusit Princess Korat Dusit Foods &

2016

Dusit Thani Hotel School 1993 Korat 1975 Dusit Thani College

Brand established in Thailand Overseas asset light expansion

2007 2010

2006

2012 2013 2014 2015 China Khao Yai Dubai 2017 2018 Dusit Gourmet

Expand & Diversify beyond hotel

• Balancing portfolio
• Strengthening

foundation

Phu Quoc China Krabi Thimphu Davao Dusit Hospitality Services 2019 Doha Bangkok Dubai Khong Thai

As of 23 August 2019

Cebu Davao Unveiled “Dusit Central Park” Grace Me Dusit Real Foods

Strategic di direction

12

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… … by strengthening 5 key pillar foundations.

Balance Expand Diversify 50:50 domestic/overseas revenue with balance of asset light vs capital investment 10% contribution from new adjacent business Double number of rooms in operation to 14,000 keys in 2021

Non-hotel:

Long term target

Stra rategic ro roadmap

13

• Set new strategic direction
• Develop new Vision/Mission/

Values

• Focus on key priorities
• Realize revenue from

new investments

• Integration of hospitality

and education business

• Double no. of keys

worldwide

• Completion of new mixed-use

project and new iconic flagship hotel

• More revenue contribution from

new investments

• Balance of revenue contribution

from Thailand and overseas

14

1H 2019 Recap

Dusit Devarana Hot Springs & Spa Conghua, China

1H1 H19 R Recap

Dusit Thani Bangkok hotel closure Jan

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

Continued to expand in food business

Acquired 51% in

Apr “Dusit Central Park” project unveil

A market leader in the education catering business

Sale of Dusit Thani Maldives to DREIT

15

• 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.

Le Condon Bleu Dusit Culinary relocation

Relocated to Zen Tower, CentralWorld Shopping Centre, Bangkok, where it can accommodate an additional 600 students per year.

Dusit Thani Laguna Phuket dusitD2 Chiang Mai The leasehold of Dusit Thani Hua Hin

THB 36.7 bn mixed-use project covering 440,000 sq.m. of prime estate on the corner of Silom and Rama IV road

1H19 R Recap ( (Co Cont’d)

Successful investment of 2 new hotels in Thailand

ASAI Chinatown Dusit Suites Hotel Ratchadamri Bangkok

Apr

• Hotel and long-term stay project

worth around THB 740 mn.

• Approx. 19 years sublease
• Opened in May 2019
• Mixed-use project with hotel and retail mall
• f which DTC will develop and manage only

hotel project worth around THB 954 mn.

• Approx. 32 years sublease
• Plan to open in 1Q20

Bangkok, Thailand 97 rooms Bangkok, Thailand 224 rooms

16

THB 0.17 per share for 2018 performance May Jun

Reduced investment in Saladang Property Management Co., Ltd. to 0% (from 14%).

Changed in investment

Dividend policy: Not less than 50% of net profit

1H19 R Recap ( (Co Cont’d)

17 Dusit Thani Mactan Cebu

Cebu, Philippines

271 rooms

dusitD2 Davao

Davao, Philippines

60 rooms

Dusit Doha Hotel

Doha, Qatar

261 rooms & 96 apartments

Dusit Princess Residences Dubai Marina

Dubai, UAE

146 rooms

Dusit Suites Hotel Ratchadamri Bangkok

Bangkok, Thailand

97 rooms

1Q19 2Q19

New hotel opening

Hot Hotel i in op

• perati

tion

18

33 hotel properties with 7,556 rooms in 11 countries

As of 30 June 2019 Hotel Name Location # Rooms Dusit Thani Pattya Thailand 457 Dusit Thani Manila Philippines 468 Dusit Thani Maldives Maldives 94 Dusit Princess Chiang Mai Thailand 198 Dusit Princess Srinakarin, Bangkok Thailand 198 Dusit Thani Hua Hin Thailand 296 Dusit Thani Laguna Phuket Thailand 252 dusitD2 Chiang Mai Thailand 130 Dusit Suites Hotel Ratchadamri, Bangkok Thailand 97 Owned hotel 2,190 Hotel Name Location # Rooms Royal Princess Larn Luang Thailand 167 Pathumwan Princess Thailand 445 Dusit Thani Guam USA 421 Dusit Thani Krabi Thailand 240 dusitD2 Khao Yai Thailand 79 Dusit Thani Dubai UAE 321 Dusit Thani Lakeview Cairo Egypt 449 Dusit Thani Abu Dhabi UAE 527 dusitD2 Nairobi Kenya 101 dusitD2 Kenz Dubai UAE 237 dusitD2 Fudu Binhu (Changzhou) China 88 Dusit Devarana Conghua (Guangzhou) China 133 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

Hotel & l & Villa lla p portfolio lio

19

Overseas Thailand Managed Owned

Pattaya Hua Hin** Laguna Phuket** Bangkok (Ratchadamri) *** Chiang Mai Bangkok (Srinakarin) Chiang Mai** Krabi Pathumwan Princess Royal Princess Larn Luang Khao Yai Ao Nang Resort, Krabi Manila Maldives Nairobi (Kenya) Kenz Dubai (UAE) Fudu Binhu (Changzhou, China) Yarkay Thimphu (Bhutan) Society Hill (Tianjin, China) Davao (Philippines) *** Guam (USA) Dubai (UAE) Lakeview Cairo (Egypt) Abu Dhabi (UAE) Dongtai (Jiangsu, China) Fudu Qingfeng (Changzhou, China)

Conghua (Guangzhou, China)

Heritage Villas Zhouzhuang, Managed by Dusit (Jiangsu, China) * 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 Moonrise Beach Resort Phu Quoc (Vietnam) Dubai Marina (UAE) ***

As of June 2019, DTC operated 271 properties with 8,579 rooms* in 14 countries

The Beach Club at Lubi Plantation Island, Managed by Dusit (Davao, Vietnam) Indonesia (144 villas) Sri Lanka (5 villas) Maldives (8 villas) Japan (18 villas) Phuket (42 villas) Koh Samui (21 villas) Mactan, Cebu (Philippines) *** Doha (Qatar) ***

* * * * * * * * * * *

Japan

* *

UK Australia

Growing g global p presen esence

20

* = In operation

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.

As of 30 June 2019

Recen ent d dev evel elopments

21

Jul-Aug The opening of Baan Dusit Thani

A new food destination at Saladang started the opening of Dusit Gourmet in July and Benjarong restaurant in August. Thien Duong restaurant and banqueting area is scheduled to be opened in September.

Jul

A joint venture between Dusit Foods (51%) and Real Foods (Pty)

• 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.

New JV set up: Dusit Real Foods

Dusit Gourmet

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 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 about building strong, natural food brands that are leaders in their categories. Real Foods was founded by Dean Kowarski in 2013. The company lists KAUAI, NÜ Health Café, Schoon, Highveld Honey & Brother Bee in its portfolio.

Inside Dusit Gourmet

22

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.

Continued development of Dusit Hospitality Management College (DHMC)

Recent d developmen ents ( s (Co Cont’d)

23

Du Dusit Ce Central P Park p progres ess

• 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.

Financial performance

24 dusitD2 Khao Yai, Thailand

Reven enue e contribution i is diversified ed a as p planned

25 Hotel 73.6% Education 7.2% Food 7.9% Others 1.3% THB 2,695 mn

2018

Hotel 77.7% Education 3.0% Food 11.0% Others 8.1% THB 372 mn

EBITDA contribution

Remark: REIT data is included in hotel business Others = Gain on sales of investment, office rental income, interest income, dividend income, share of profit from investment by equity method, and others

1H19 Revenue contribution 2018 1H19

Hotel 83.2% Education 7.6% Others 9.2% THB 5,565 mn Hotel 89.4% Education 4.3% Others 6.3% THB 1,000 mn

• This is in-line with the company’s

diversification strategy that target 10% revenue contribution from new adjacent business.

• Tourism industry shown soften

trend as well as the company’s hotel business outlook.

• EBITDA

contribution is more balanced with higher contribution from food business which provide greater profitability.

Higher revenue contribution from food business thanks to the new investments More balance of EBITDA mix

Hot Hotel k key statis tisti tics (excluding E

g Elite Havens)

26

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).

1H18: 33 properties

in 11 countries

59% 41% 62% 38% 63% 37% 71% 29%

• Proportion
• f
• wned

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 and strong Thai Baht that adversely impacted number of tourist arrivals and spending.

9,033 9,980 11,573 2016 2017 2018 1H19

Non-current Current

3,679 4,099 5,495 6,837 2016 2017 2018 1H19

Non-current Current

Total Assets

5,354 5,881 6,078 5,933 2016 2017 2018 1H19

Non-controlling interest Total

Co Contraction w with p progr gress ession

27

Total Liabilities Total Equity

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.

• 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.

12,770

Equity attributable to owners of the parents

28

Outlook & Guidance

Dusit Thani Maldives, Maldives

2019 O Outlook & & Guidance

29

• 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.

Remark: * Transaction is expected to complete in 3Q19

• 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

2019 O Outlook & & Guidance ( (Co Cont’d)

30

• Mixed-use project development, Dusit Central Park, is on progress.
• Exploring residence and wellness opportunity with strategic partners

Remark: * Excluding new investment ** Dusit Thani Pattaya, Dusit Thani College, Dusit Princess Chiang Mai and Dusit Princess Srinakarin Bangkok

• 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
• 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

Mai aintain ins l lon

• ng t

term ou

• utlook
• k

31

Remark: Excluding new investment and hotel renovation under DREIT

# of new managed properties per year New residence Food business growth (CAGR) Core EBITDA margin Average CAPEX per year* (THB mn) 10-12 Pre-sales at end 2019 20-25% 18-20% 1,000 10 Completed in 2024 15-20% 20-25% 2,500

• Realize revenue from new

investments

• Integration of hospitality and

education business

• Double no. of keys worldwide
• Completion of new mixed-use project

and new iconic flagship hotel

• More revenue contribution from new

investments

• Balance of revenue contribution from

Thailand and overseas

32 Dusit Thani Dubai, UAE