CENTRAL PLAZA HOTEL PCL. 5 July, 2016 Company Background Hotel - - PowerPoint PPT Presentation

CENTRAL PLAZA HOTEL PCL.

5 July, 2016

Company Background Hotel Business Food Business Financial Highlight & Outlook

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COMPANY BACKGROUND

CENTRAL GROUP & CENTEL OVERVIEWS

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CENTEL’S Shareholders

@Mar 31, 16

“Chirathivat” family 65% Local investors 20% Foreign investors 15% Symbol: CENTEL Sector: Tourism Div Policy: 60% Price: Bt38.75 (as of 12/05/16) Market Cap: Bt52,313mn

Equity market information

Yuwadee Chirathivat CEO Pascal Billaud CEO Suthisarn Chirathivat CEO Worawoot Ounjai CEO

Central Group Business Unit

Preecha Ekkunagul CEO Edwin Yap Hawson CEO Thirayuth Chirathivat CEO Thiradej Chirathivat CEO Tos Chirathivat Group CEO

CENTEL

Phillippe Broianigo CEO Vietnam

MILESTONES

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CENTEL’s MILESTONE

introduced “Mister Donut” 1st hotel, “Centara Grand at Central Ladprao Bangkok” Authorized franchisee

• f KFC

Franchisee

• f Auntie

Anne’s Listed in The Stock Exchange

• f Thailand

(SET) Capital increase

• f Baht

500 million Capital increase of Baht 450 million Par splited from Baht 5 to Baht 1 Rebranding hotel brand from “Central” to “Centara” Centara Grand at Central World Launched Property Fund (Centara Grand Samui) Centara Grand Mirage Beach Resort, Pattaya Opening the 1st oversea JVs in Maldives “Centara Grand Resort & Spa, Maldives” Terminated Pizza Hut and Baskin Robbins and introduced Beard Papa’s Opening Centara Grand Phuket Bought 5 new brands into portfolios Acquired “Ootoya” home cooking style Japanese restaurant

Corporate Food business Hotel business

Introduced Pepper Lunch Step up acquisition of

• Centara

Karon, (Feb)

• Centara

Maldives (Mar)

• Centara

Grand Maldives (Dec) Centara Maldives (24-Mar) Terminated Café Andonand Introduced “Tenya” into portfolio Step up acquisition of Centara Kata (7-Oct) Terminated Beard Papa’s Introduced “katsuya” into portfolio

1978 1983 1984 1990 1991 1998 2006 2007 2008 2009 2010 2011 2012 2013 2014

BUSINESS CONTRIBUTION 2015

47% 70% 69% 53% 30% 31%

Total Revenue* EBITDA NPAT

Hotel Food

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91% 9%

Total Revenue and Profit by Segment

Thailand

Overseas

* Excluded equity gain (loss) from property fund, amortization of deferred rental income

Total Revenue by Geography

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HOTEL BUSINESS

BRANDS & KEY STRATEGY

Asset Right Strategy Asset Light Strategy

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• Focusing on expansion of portfolios through hotel

management business

• Investing in property (100% equity or JVs)

using internal cash flow and leverage, subject to internal guideline

2 Key Strategies

Key Brands Brands Traditional Lodging Independent Travelers Extended Stay Grand Design Exclusively Yours Designed & Focused Value Proposition Economy Brand

HOTEL PORTFOLIOS AS AT 1 JULY 16

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*2 COSI hotels, *** incl. contracts on hand only

Total portfolios Owned hotels Property Fund Managed hotels Total % (by rooms) Thailand 3,809 (14) 202 (1) 4,343 (25) 8,354 (40) 68% Overseas 252 (2)

• 3,718

(15) 3,970 (17) 32% Total Rooms (Hotels) 4,061 (16) 202 (1) 8,061 (40) 12,324 (57) 100% Hotels in

• peration

Owned hotels Property Fund Managed hotels Total % (by rooms) Thailand 3,358 (12) 202 (1) 3,223 (19) 6,783 (32) 92% Overseas 252 (2)

• 373

(3) 625 (5) 8% Total Rooms (Hotels) 3,610 (14) 202 (1) 3,596 (22) 7,408 (37) 100% Hotels in pipeline Owned hotels Property Fund Managed Hotels Total % (by rooms) Thailand 451* (2)

• 1,120

(6) 1,571 (8) 32% Overseas

• 3,345

(12) 3,345 (12) 68% Total Rooms (Hotels) 451 (2)

• 4,465

(18) 4,916 (20) 100%

254 150 437 730 514 2,495 46

4 2 10 4

• 40
• 30
• 20
• 10

• 500

500 1,500 2,500 3,500 4,500 2016F 2017F 2018F 2019F Overseas Thailand # of hotels

20 Hotels in pipeline by target opening year***

Remark: Overseas include Indonesia, Laos, Maldives, Sri Lanka, Doha, Oman, Cuba and China IND 2 hotels Maldive s 5 hotels CHN 1 hotel THA

40 hotels

INDO 2 hotels

Total Portfolios: 57 hotels with 12,324 rooms

Maldives 2 hotels CHN 3 hotels VNM 3 hotels Srilanka 1 hotel Middle East 4 hotels LAOS 1 hotel CUBA 1 hotel 290

FEEDER MARKET FY15 and 1Q16

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CENTARA’s Guests by room nights

27% 10% 37% 3% 17% 2% 4% 36% 9% 31% 3% 15% 3% 3% Asia AUS EU Middle East THA USA Others FY14 FY15 34% 6% 40% 3% 12% 2% 3% 36% 5% 39% 3% 12% 3% 2%

Asia AUS EU Middle East THA USA Others

1Q15 1Q16

HOTEL PERFORMANCE SNAPSHOT

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Noted: Performance of owned hotels Noted: **Excluded extra items and deferred rental income from PFPO

EBITDA Margin

8,316 9,046 2,719 2,803 FY14 FY15 1Q15 1Q16 Total Revenue

Total Revenue** (Btm)

3,812 3,812 3,812 3,812 4,773 3,908 3,993 3,938 FY14 FY15 1Q15 1Q16 Managed Hotels Owned + JVs Hotels

Number of rooms

2,636 2,951 1,187 1,168 FY14 FY15 1Q15 1Q16

EBITDA (Btm)

31.7% 32.6% 43.7% 41.7% FY14 FY15 1Q15 1Q16 +12% +9% +3%

• 2%

ARR (Bt) 2014A 2015A % Chg 1Q15 1Q16 % Chg Bangkok 3,112 3,248 4.4% 3,148 3,411 8.3% Upcountry 3,987 4,017 0.7% 5,199 5,056

• 2.8%

Maldives 17,455 19,133 9.6% 21,931 24,587 12.1% Average 4,855 4,809

• 1.0%

5,782 5,870 1.5% OCC (%) 2014A 2015A Chg 1Q15 1Q16 Chg Bangkok 61.6% 81.3% 19.7% 85.0% 85.0%

• Upcountry

78.9% 79.6% 0.7% 84.9% 88.0% 3.1% Maldives 90.6% 86.2%

• 4.4%

89.8% 85.3%

• 4.5%

Average 74.8% 80.5% 5.7% 85.3% 87.0% 1.7% RevPar (Bt) 2014A 2015A % Chg 1Q15 1Q16 % Chg Bangkok 1,917 2,642 37.8% 2,677 2,898 8.2% Upcountry 3,146 3,197 1.6% 4,416 4,448 0.7% Maldives 15,814 16,495 4.3% 19,687 20,982 6.6% Average 3,632 3,872 6.6% 4,932 5,104 3.5%

CENTARA vs. MARKET PERFORMANCE

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24.8 29.9 7.8 9.0 +20% 74% 80% 85% 87% 56% 62% 68% 70%

• 200%
• 150%
• 100%
• 50%

0.0 10.0 20.0 30.0 40.0 50.0 60.0 FY14 FY15 1Q15 1Q16

Tourist Arrivals CENTEL - OCC (Thailand) Industry - OCC

Source: BOT * Source: National Economics and Social Development Board - NESDB

+15%

Bangkok Maldives Phuket Pattaya Hua Hin Samui Krabi Hat Yai Tak Total # Rooms 1,077 252 827 555 249 302 192 245 113 3,812 % of Total Rooms 28.3% 6.6% 21.7% 14.6% 6.5% 7.9% 5.0% 6.4% 3.0% 100%

%RevPar Growth (FY15) – Y-o-Y 37.8% 4.3%

• 2.2%
• 0.9%

5.4% 5.2% 6.3% 9.6%

• 0.2%

6.6% %RevPar Growth (1Q16) – Y-o-Y 8.2% 6.6%

• 3.7%
• 3.6%

3.4% 6.0% 11.6% 5.4% 21.3% 3.5%

REVENUE CONTRIBUTION BY LOCATION

26% 21% 16% 14% 8% 7% 6% 3% 30% 19% 16% 13% 7% 7% 6% 2%

Bangkok Maldives Phuket Pattaya Hua Hin Samui Krabi Others

FY14 FY15

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Revenue 26% 19% 18% 13% 8% 7% 7% 2% 26% 21% 17% 12% 8% 7% 7% 2%

Bangkok Maldives Phuket Pattaya Hua Hin Samui Krabi Others

1Q15 1Q16 Revenue

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FOOD BUSINESS

BRANDS AND KEY STRATEGY

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Owned-Outlet Expansion Acquisition Joint Venture

Key Strategy

10 Brands (Franchise Agreements) 1 Brand (In House) Establishment 1978 1984 1988 2007 2010 2011 2013 2014

• Joint venture with

partner

• Acquisition

Existing brands expansion

across Thailand

All expansion plans are expected to be supported by internal cash flows and debt.

PORTFOLIOS AS AT 31 MARCH, 2016

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Brands # Outlets KFC 207 Mister Donut 319 Auntie Anne’s 129 Ootoya 47 Pepper Lunch 17 Cold Stone 17 The Terrace 15 Chabuton 17 Yoshinoya 18 Tenya 4 Katsuya 10 Total 800

3% in

the West

7% in

the North

60%

in Central

10% in

the East

12% in

Northeast

8% in

the South

Outlets and Revenue Contribution: 37% of total outlets and 35% of total food revenue are from Bangkok

37%

Bangkok Contribution

35%

By Location By Revenue

FOOD PERFORMANCE SNAPSHOT

1.4%

• 0.7%

0.6%

• 0.1%

9.3% 2.0% 5.6% 3.2% FY14 FY15 1Q15 1Q16

SSS TSS

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9,967 10,170 2,426 2,503 FY14 FY15 1Q15 1Q16 Total Revenue (Btmn) 781 792 777 800 FY14 FY15 1Q15 1Q16 Number of Outlets 937 1,258 297 291 9.4% 12.4% 12.2% 11.6%

FY14 FY15 1Q15 1Q16 EBITDA (Btmn) EBITDA Margin +1% +2% +34% +3%

• 2%

+3%

REVENUE CONTRIBUTION BY BRANDS

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*Other heavy food include Pepper Lunch, Chabuton, The Terrace, Yoshinoya, Tenya, Katsuya and Ryu (terminated 1Q16) **Other light food include Cold Stone.

54% 19% 9% 7% 9% 2% 55% 19% 8% 7% 9% 2% KFC MD OOTOYA AA Other Heavy Food Other Light Food FY14 FY15

FY15 KFC Mister Donut Auntie Anne’s Ootoya Other heavy food* Other light food** Total #Outlets (FY15) 207 318 129 47 75 16 792

Y-o-Y growth (#outlet) 2.0%

• 1.9%

3.2%

• 10%

14% 1%

#Outlets (1Q16) 207 319 129 47 81 17 800

Y-o-Y growth (#outlet) 2.5%

• 1.2%

2.4% 2.2% 20.9% 30.8% 3.0%

55% 18% 9% 7% 8% 3% 55% 18% 8% 8% 10% 2% KFC MD OOTOYA AA Other Heavy Food Other Light Food 1Q15 1Q16

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Financial Highlight and Outlook

LT debt, 4,667MB , 56%

DEBT PROFILE AS AT 31 March, 2016

396.5 4,999.0 2,913.5 2.0

O/D and ST/L Debentures LT/L Finance Lease Liabilities

20 Bt8,311mn Interest Bearing Debt with Average Cost of Debt at 3.9%

Unit: Btmn

Floating rate, 4,108MB , 49% USD loans, 22% Baht loan, 78%

Loan breakdown by type Loan breakdown by type

Key financial ratios FY15 1Q16 Net Debt*/Equity 1.16 0.99 IBD/Equity 0.87 0.77

*excl. amortised deferred income from property fund

GUIDANCE 2016

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Hotel FY15A FY16F Occupancy 81% 81% -82% RevPar 7% 4% - 5% Revenue from operation 7% 4% - 5% Food FY15A FY16F SSS

• 1%

Flat TSS 2% 4% Outlet Expansion 1% 4% Key drivers

• Bangkok Hotels in

particular Centara Grand at Central World

• Centara Grand

Maldives – post renovation Key Challenges

• High Competition in

Pattaya and Phuket due to changes in guest mix

Key Factors

Key Drivers

• Top 3 brands

KFC, Mister Donut, Auntie Ann’s

• Continued efforts
• n cost control

Key Challenges

• Slim economic

growth and weak domestic consumption

Key Factors

DEVELOPMENT HIGHLIGHT

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15,000 rooms (>70 hotels) >1,000 outlets 7,720 rooms (40 hotels) 792 outlets of 12 brands 5,726 rooms (32 hotels) 512 outlets of 8 brands

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THANK YOU

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HOTEL IN OPERATION AS AT 1 JULY 2016 (1/2)

Total 37 hotels in operation as at 1 July 2016 with 7,408 rooms (including 15 owned hotels and 22 hotels under management contract).

Hotel Name #Rms Country Owned Hotels 1 Centara Grand at CentralWorld 512 Thailand 2 Centara Grand at Central Plaza Ladprao Bangkok 565 Thailand 3 Centara Grand Resort & Villas Hua Hin 249 Thailand 4 Centara Grand Beach Resort Phuket 262 Thailand 5 Centara Grand Beach Resort & Villas Krabi 192 Thailand 6 Centara Grand Mirage Beach Resort Pattaya 555 Thailand 7 Centara Villas Phuket 72 Thailand 8 Centara Karon Resort Phuket 335 Thailand Hotel Name #Rms Country Owned Hotels (continued) 9 Centara Mae Sot Hill Resort 113 Thailand 10 Centara Hat Yai 245 Thailand 11 Centara Villas Samui 100 Thailand 12 Centara Grand Island Resort & Spa Maldives 112 Maldives 13 Centara Ras Fushi Resort & Spa Maldives 140 Maldives 14 Centara Kata Resort Phuket 158 Thailand Property Fund Hotel 15 Centara Grand Beach Resort Samui 202 Thailand Asset types # Properties #Rms Owned & JV hotels 15 3,812 Managed hotels 22 3,596 Grand total 37 7,408 List of 15owned & JV hotels (3,812rooms)

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Hotel Name #Rms Country

27 Centara Koh Chang Tropicana Resort 157 THA 28 Centra Government Complex Hotel & Convention Centre Chang Wattana 204 THA 29 Centra Coconut Beach Resort Samui 55 THA 30 Centara Watergate Hotel & Spa Bangkok 281 THA 31 Centara Seaview Resort Khao Lak 230 THA 32 Centra Central Station Bangkok 150 THA 33 Centara Grand Phrathamnak Pattaya 165 THA 34 The Blue Marine Resort & Spa Phuket managed by CentaraHotel & Resort 266 THA 35 CentaraCeysandsResort & Spa Srilanka 165 SRI 36 Centra Avenue Hotel Pattaya 51 THA 37 Centra Maris Resort Jomtien 282 THA

Hotel Name #Rms Country

Managed Hotels 16 Khum Phaya Resort, Centara Boutique Collection 87 THA 17 Centara Hotel & Convention Centre Udon Thani 259 THA 18 Centara Chaan Talay Resort & Villas Trat 44 THA 19 Centara Q Resort Rayong 42 THA 20 Centara Anda Dhevi Resort & Spa Krabi 135 THA 21 Centara Pattaya Hotel 152 THA 22 Centara Nova Hotel & Spa Pattaya 79 THA 23 Waterfront Suites Phuket by Centara 39 THA 24 Centra Taum Resort Bali 90 IND 25 Centara Grand West Sands Resort & Villas, Phuket 545 THA 26 Sandy Beach Non NuocResort Danung Vietnam Managed by Centara 118 VNM List of 22 hotels under management contract (3,596 rooms)

Hotels in Operation as at 1 May 16 (2/2)

Opened in 1Q16

HOTEL IN OPERATION AS AT 1 JULY 2016 (2/2)