4Q17 & FY17 Results Briefing 1 Disclaimer This document is - - PowerPoint PPT Presentation

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4Q17 & FY17 Results Briefing

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Disclaimer

This document is provided to you for information only and should not be relied on or used as a basis for making any specific investment, business or commercial decision. No representation or warranty, expressed or implied, is made as to, and no reliance should be placed on, the information or opinions contained herein. This document does not constitute and should not be construed as, any offer or solicitation for the subscription, purchase or sale of any securities of Banyan Tree Holdings Limited (“Banyan Tree”). Nothing in this document should be construed as a recommendation regarding the securities of Banyan Tree. Certain statements in this document may constitute "forward-looking statements”, including statements regarding, amongst

• ther things, Banyan Tree’s business and growth strategy. These statements reflect Banyan Tree’s expectations and are

subject to risks and uncertainties that may cause actual results to differ materially and may adversely affect the outcome and financial effects of the plans described herein. You are cautioned not to rely on such forward-looking statements. Banyan Tree disclaims any obligation to update their view of such risks and uncertainties or to publicly announce the result of any revisions to the forward-looking statements made herein, except where they would be required to do so under applicable law. Banyan Tree is under no obligation to keep current the information contained in this document and any opinions expressed in it are subject to change without notice. None of Banyan Tree or any of its affiliates, advisers or representatives shall have any liability whatsoever for any loss whatsoever arising from any use of this document or its contents, or otherwise arising in connection with this document (whether direct, indirect, consequential or other). This document is not intended to provide professional advice and should not be relied upon in that regard. Prospective investors should consult their tax, legal, accounting or other advisers. The information in this document is given in confidence and reproduction of this document, in whole or in part, or disclosure

• f any of its contents, without prior consent of Banyan Tree, is prohibited.

This document remains the property of Banyan Tree and on request must be returned and any copies destroyed.

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Agenda

1. Overview & Outlook Ho KwonPing 2. Hotel & Fee-Based Business Eddy See 3. Property Business Eddy See 4. Key Figures Eddy See

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Overview & Outlook

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Overview

Group Financial Highlights

FY16 (S$’M) FY17 (S$’M) Change* REVENUE 309.6 317.5 3% OPERATING PROFIT 51.7 74.7 44% PATMI (16.2) 12.9 nm CASH EARNINGS** (9.4) 31.9 nm

Revenue  3% and Operating Profit  44% due to:

• Gain from divestment of China entities partially offset by  net fair value gains.
•  revenue from Fee-based segment.
• Strong performance from Thailand and Seychelles resorts.

Cash Earnings: S$32m vs loss of S$9m. Proposed dividend of 1 cent/share.

* Variance is computed based on figures to the nearest thousands & in line with announcement in SGXNet. ** Computed based on PATMI adjusted for non-cash items i.e. depreciation, amortisation expense, fair value adjustments on long term investments/investment properties, impairments and fixed assets written off. These non-cash items are after MI adjustments.

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Outlook

Macro outlook1:

• Global economic activity continues to firm up.
• Projected growth for our key markets (Europe and China) revised upwards.

Promising hotel outlook:

• Hotel forward bookings  15%.

Encouraging property sales in Phuket:

• Newly launched Cassia Phuket (Phase 3) well received. 50% reserved as at Dec’17.
• Continuing strong response for Angsana Beachfront Residences and Laguna Park Phuket.
• Unrecognised revenue  91% as at Dec’17.
• Laguna Phuket land bank remained high at 1.1 million sqm; can yield S$1.8 billion in potential

revenue. Expect increasing income going forward:

• Strategic alliance with Accor and Vanke.
• Improving global economic growth.

1 Source: IMF, World Economic Outlook Update (January 2018).

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Voluntary Tender Offer to increase economic interest in LRH:

• Submitted LOI on 26th Feb 2018 to acquire all the remaining 34.25% ordinary shares in LRH.

(BTH currently owns 65.75% of LRH.)

• Offer price THB 40.
• Total value for 34.25% shares : THB 2,283 million (~S$95 million)
• Offer price is ~39.5% premium to the 30 day VWAP of LRH’s shares (ie. THB 28.7 per share).
• Funding supported by bank facility (Siam Commercial Bank).
• Rationale For and Benefits of Acquisition:
• Increase its economic interest in LRH.
• Offers LRH’s shareholders the opportunity to realise their investment.
• No plans to delist shares of LRH from SET.

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Hotel & Fee-Based Business

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(0.4) (2.8) 0.5 (3.4) 4.0 6.9 12.7 18.7

• $4.0

$0.0 $4.0 $8.0 $12.0 $16.0 $20.0 4Q16 4Q17 FY16 FY17

Non-Thailand Thailand

S$'M

QTD

13.3 15.2 3.6

YTD

4.1  2.0m  0.5m

Hotel Investments – Financial Performance

Operating Profit

Owned Hotels1

Highlights

• 1. Hotel management fees attributed for hotels managed and owned by BTH was allocated to hotel management segment.

QTD / YTD:

•  revenue from Thailand

and Seychelles. Partially offset by:

•  revenue from Maldives.

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(1.6) 1.8 (8.0) 1.4 2.3 0.4 4.1 1.3 6.8 6.5 19.5 20.5

• $10.0
• $5.0

$0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 4Q16 4Q17 FY16 FY17

Design and others Spa/Gallery Hotel management

S$'M 7.5 15.6 23.2

QTD YTD

8.7  1.2m  7.6m

Fee-Based Business – Financial Performance

Operating Profit Highlights

1. Hotel management fees attributed for hotels managed and owned by BTH was allocated to hotel management segment. 2. Hotel management revenue includes royalty fees.

QTD:

•  fees (architectural &

design). Partially offset by:

•  fees (hotel, spa/gallery).

YTD:

•  fees (architectural &

design).

•  provision for doubtful

debts.

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65% 60% 65% 63% 55% 52% 62% 58%

50% 54% 58% 62% 66% 70%

1Q 2Q 3Q 4Q %

2017 2016

2017 2016

Hotel Operating Performance – Ave Occupancy (%)

All Hotels (Same Store1) Highlights

1. Same Store Concept excludes all new resorts opened/rebranded in the past 2 years as they take on an average two years to stabilize.

QTD:

•  5% points

YTD:

•  6% points

Both periods due to our resorts in Thailand and Seychelles. FY17: 63% FY16: 57%

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402 341 340 380 397 309 334 388

300 320 340 360 380 400 420 1Q 2Q 3Q 4Q S$ 2017 2016

2017 2016

Hotel Operating Performance – Ave Room Rates (S$)

All Hotels (Same Store1) Highlights

QTD:

•  2% due to Seychelles,

Korea and Indonesia. YTD:

•  3% due to Thailand and

Seychelles. FY17: 366 FY16: 357

1. Same Store Concept excludes all new resorts opened/rebranded in the past 2 years as they take on an average two years to stabilize.

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263 203 221 241 219 161 207 226

150 170 190 210 230 250 270 290 1Q 2Q 3Q 4Q

S$

2017 2016

2017 2016

All Hotels (Same Store1) Highlights

Hotel Operating Performance – RevPAR (S$)

QTD:

• 7%

YTD:

• 14%

Both periods due to higher OCC %. FY17: 232 FY16: 203

1. Same Store Concept excludes all new resorts opened/rebranded in the past 2 years as they take on an average two years to stabilize.

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Room Revenue Of Owned Hotels By Country Of Residence

China 23% Europe 28% Russia 11% Middle East 9% NE Asia 14% SE Asia 5% Others* 10%

FY16

$99.8m

$23.5m $27.9m $10.8m $9.0m $13.8m $5.0m $9.8m China 24% Europe 28% Russia 11% Middle East 7% NE Asia 13% SE Asia 5% Others* 12%

FY17

$4.8m

$104.9m

$12.5m $14.1m $7.7m $25.4m $29.1m $11.2m

* Others originated mainly from United States, Australia, Canada, India and New Zealand.

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Room Revenue Of All Hotels By Country Of Residence

* Others originated mainly from United States, Australia, Canada, India and New Zealand.

China 43% Europe 15% Russia 4% Middle East 6% NE Asia 15% SE Asia 4% Others* 13%

FY16

$310.3m

$132.2m $45.8m $12.5m $19.2m $45.7m $13.7m $41.3m China 44% Europe 14% Russia 4% Middle East 3% NE Asia 15% SE Asia 5% Others* 15%

FY17

$14.2m

$317.9m

$47.2m $47.7m $11.0m $139.9m $45.3m $12.7m

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4.7 5.4 5.7 6.1 8.0 9.2 12.1 14.5

3.4 4.1 4.4 3.7 5.4 5.5 6.9 7.3 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 2Q16 2Q17 3Q16 3Q17 4Q16 4Q17 1Q17 1Q18

Thailand Non-Thailand

US$'M

 5%

9.8 8.1 9.5 10.0 21.8 19.0 13.5 14.7

 20%  15%

Hotel Business – Forward Bookings

Owned Hotels1 (Same Store2)

On-The-Book (“OTB”) Room Revenue

Highlights

1. Owned Hotels refer to hotels we have ownership interest (> 50%) in. 2. Same Store Concept excludes all new resorts opened/rebranded in the past 2 years as they take on an average two years to stabilize. 3. Based on OTB as at mid of January 2018.

1Q18 vs 1Q17:

• Thailand  20%.
• Non-Thailand  5%.
• Overall  15%.

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6.5 7.0 8.2 8.7 9.9 11.5 14.6 17.9 12.5 18.0 17.6 20.3 19.6 24.1 22.4 26.4 $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 2Q16 2Q17 3Q16 3Q17 4Q16 4Q17 1Q17 1Q18

Thailand Non-Thailand

 18%

US$'M

 20%  23%

19.0 25.0 25.8 29.0 29.5 35.6 37.0 44.3

Hotel Business – Forward Bookings

All Hotels (Same Store1)

On-The-Book (“OTB”) Room Revenue

Highlights

1Q18 vs 1Q17:

• Thailand  23%.
• Non-Thailand  18%.
• Overall  20%.

1. Same Store Concept excludes all new resorts opened/rebranded in the past 2 years as they take on an average two years to stabilize.

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• No. of Keys

69 22 25 29 32 34 35 37 39 41 48 58 19

• No. of

Hotels: 17

706 798 1,100 1,436 1,698 1,897 2,116 2,284 2,405 2,363 2,687 3,215 3,690 3,925 442 859 475 998 1,618 1,746 1,827 2,220 2,226 2,274 2,274 2,927 3,587 4,008 229 229 285 514 514 620 516 516 718 1,482 2,389 112 112 112 112 112 112 112 112 112 112 112 112 112 112

1,260 1,769 1,687 2,546 3,428 3,755 4,055 4,616 4,972 5,494 5,874 7,486 9,385 11,054

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 11,000 12,000 2007A 2008A 2009A 2010A 2011A 2012A 2013A 2014A 2015A 2016A 2017A 2018E 2019E 2020E

Banyan Tree Angsana Cassia Dhawa Holiday Club

Hotel Business – Projected Growth

Steady Pipeline Growth

Number of keys1

Highlights

1. Based on contracts that were already signed.

• CAGR of 23% based on

contracts completion dates.

• 28 hotels to be opened in

next 3 years.

• Room keys estimated to

grow by 88% from 5,874 keys in 2017 to 11,054 keys in 2020.

• Additional keys are

largely managed without any equity interest.

CAGR 2018 - 2020 = 23%

Past Current Future 67% 27% 17% 33% 73% 83% Owned Hotels % Managed Hotels %

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Hotel & Fee-Based Business - Outlook

Income expected to increase:

• Continuing economic growth for Europe and China, our key markets.
• Strong pipeline of new hotel projects.
• Collaboration with Accor and Vanke.
• Forward bookings (owned hotels, same store) for 1Q18  by 15%.
• Thailand  20%.
• Non Thailand  5%.

7 resorts expected to open in 2018: i. Angsana Zhuhai Phoenix Bay, Guangdong, China ii. Angsana Cayo Santa Maria, San Agustin, Cayo Las Brujas, Cuba iii. Dhawa Jinshaling, Hebei, China iv. Banyan Tree Anji, Zhejiang, China v. Banyan Tree Kuala Lumpur, Malaysia vi. Royale Pavilion by Banyan Tree, Kuala Lumpur, Malaysia vii. Angsana Corfu, Greece 8 Spa outlets expected to open in 2018.

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Property Business

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1.9 4.2 3.7 2.9

$0.0 $1.0 $2.0 $3.0 $4.0 $5.0 4Q16 4Q17 FY16 FY17

S$'M

YTD QTD  2.3m  0.8m

Property Business – Financial Performance

Operating Profit1 Highlights

QTD:

•  units recognised: 31

units (4Q17) vs 18 units (4Q16). YTD:

•  units recognised but at

lower value and margin.

• 139 units (FY17) vs 82

units (FY16).

1. Based on completed contract method of revenue recognition.

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$12.2 $49.0 $57.9 $126.8 15 89 69 180

$- $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 20 40 60 80 100 120 140 160 180 200

4Q16 4Q17 FY16 FY17 Net Sales (Value) Net Sales (Qty)

Unit S$'M

QTD YTD

Property Business – Financial Performance

Sales Progress Highlights

QTD:

• 89 units sold vs 15 units in

4Q16.

•  mainly for Cassia

Phuket, Laguna Park and Cassia Bintan. YTD:

• 180 units sold vs 69 units

in FY16.

•  mainly for Cassia

Phuket, Angsana Beachfront Residences, Laguna Park Phuket and Cassia Bintan.

• Unrecognised Revenue as

at Dec’17 was S$166 million; 30% to be recognised in 2018. units units units units

Recognised in Year S$'M 2018 50.7 2019 2.4 2020 113.1 Unrecognised Revenue as at 31.12.2017 : S$166.2m

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Property Business - Outlook

Encouraging property sales momentum in Phuket

• Continuing strong response from Angsana Beachfront Residences and Laguna Park Phuket.
• Cassia Phuket (Phase 3) well received when launched in Nov’17; close to 50% units reserved.

Total 195 units (S$137.8m) sold in FY17 vs. 93 units (S$65.8m) in FY16. S$166.2m of unrecognised revenue, 91% higher than last year of S$86.8m.

• About 30% will be recognised in 2018, remaining in 2019 - 2020.

Undeveloped land bank of 1.1 million square metres in Phuket; potential revenue of S$1.8 billion when developed.

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POTENTIAL DEVELOPMENT SITES 1 Sugar Palm 2 Dusit Beach 3 Plateau 4 Laguna Royale 5 Dusit Pitch & Putt 6 Angsana Dorm & Kindergarten 7 Old Hole 16 Golf 8 Laguna Mall 9 Angsana Oceanview 10 Golf Course 11 Allamanda 12 Dhawa 13 Laguna Park Condo 14 BT Residences (EIE) 15 Laguna Village (Ph2) – Residences Ph8 16 Laguna Village TDCL, LGL & Lofts 1 2 3 4 5 6 8 9 10 7 11 12 13 14 15 16

Laguna Phuket (1.1 million sqm of potential land bank)

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*Internal preliminary rough projection

Land Bank Potential Units Land Area (sqm) Saleable area (sqm) Potential Revenue (S$billion) Phuket Total Plan* 4,874 1,154,000 574,000 1.8

Unlocking Laguna Phuket remaining land bank development potential

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Key Figures

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EBITDA

S$1.1b S$75m

Enterprise Value5 NAV2 Per Share Share Price3 / NAV Cash and Cash Equivalents Net Gearing Ratio4

S$0.71 S$159m 52% 20% discount

Note: 1. Financial figures as at 31-Dec-17. 2. NAV denotes Net Asset Value. 3. Share price based on closing share price of S$0.57 as at 9 Feb 2018. 4. Gearing ratio is defined as net debt divided by total equity (includes minority interests). 5. Enterprise value (EV) defined as sum of Market Capitalization, Debt and Minority Interest, less Cash.

EV/EBITDA

14.2x

Key Figures1

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Mission Statement

“ We want to build globally recognised brands which by inspiring exceptional experiences among

• ur guests, instilling pride and integrity in our

associates and enhancing both the physical and human environment in which we operate, will deliver attractive returns to our shareholders. ”

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Thank You