Central Plaza Hotel Public Company Limited - CENTEL Q2/19 - - PowerPoint PPT Presentation

Central Plaza Hotel Public Company Limited - CENTEL

Q2/19 Opportunity Day Presentation

Agenda

• Q2/19 summary performance
• Hotel business overview
• Food business overview
• CAPEX and guidance 2019
• Appendix

Consolidated earning Q2/19 and 6M19

Note: * Total hotel revenue included deferred rental income ** Insurance claim from fire at Central World, Big C Rajdamri and Center One in 2010

Q2/19 Summary Performance Page 3 Decreases in Chinese & Russian during low season, Closure of Centara Grand Beach Resort Samui, Indirect impact from fire event at CentralWorld shopping mall, Lower demand from government entities during changeover, Closure of food outlets at Central Ladprao shopping mall, Ongoing value promotion campaign, and Increase in fixed costs.

THB million Q2/18 Q2/19 % Chg 6M18 6M19 % Chg Total hotel revenue* 2,139.4 2,000.7

• 6.5%

5,088.3 4,756.4

• 6.5%

Total food revenue 3,051.7 3,224.9 5.7% 5,844.1 6,112.2 4.6% Total revenues 5,191.1 5,225.6 0.7% 10,932.4 10,868.6

• 0.6%

EBITDA 1,003.2 906.7

• 9.6%

2,667.6 2,404.3

• 9.9%

EBITDA margin (%) 19.3% 17.4%

• 1.9%

24.4% 22.1%

• 2.3%

Net profit from operation 371.7 290.5

• 21.8%

1,254.8 1,035.8

• 17.5%

Extraordinary items Add: Insurance claim (net tax)**

• 80.6

NA Less: Provision of long term employee benefits

• (58.1)

NA

• (58.1)

NA Net profit excluding non-recurring items 371.7 232.4

• 37.5%

1,254.8 1,058.3

• 15.7%

Margin being pressured from several unfavorable factors

Low gearing & optimized profile

Page 4

Average funding cost of 3.16%

Fixed, 78% USD, 20%

Gearing ratio Dec 2018 Jun 2019 Current ratio 1.1 0.9 Interest bearing debt/Equity 0.5 0.5 Dec 2018 Jun 2019

OD, Short-term loan Debentures Long-term loan

Note: * Included current portion of long-term loan and debentures

*

THB 7.1bn 1.4%

60% 34% 6% 50% 28% 22%

Dec 2018 Jun 2019 Financial position

Total liabilities Total equity

49% 51% 52% 48%

THB 26.4 bn 1.1% Total interest bearing debt

Q2/19 Summary Performance

THB 26.1 bn THB 7.0bn

Hotel l busin iness

• verview

Thailand tourism overview

Indian strong growth

Hotel Business Overview Page 6

6

Source: Ministry of Tourism and Sport

8.9 9.1 9.7 10.8 9.0 19.5 19.7 9.1% 2.7% 4.3% 1.5% 1.1% 12.2% 1.3%

• 200.0%
• 150.0%
• 100.0%
• 50.0%

• 5.0

5.0 15.0 25.0 35.0 45.0 55.0

Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 6M18 6M19

• No. of tourist arrivals

Growth yoy

Thailand number of tourist arrivals

Unit: million

Chinese (-4.9%) and European drop (-2.0%)

Thailand tourism overview

Page 7

Indian +24% yoy

(Unit : Person) Source: Ministry of Tourism and Sport

Hotel Business Overview

• 5%

7% 24% 3% 5% 11%

• 3%

4% 3% 1%

China 5,638,627 29% Malaysia 1,930,252 10% India 978,751 5% Korea 907,343 5% Laos 880,733 4% Japan 4% Russia 4% USA 3% Vietnam 3% [CATEGORY NAME] [PERCENTAGE] Hong Kong 2% Singapore 2% Germany 2% Cambodia 2% France 2% Others 19%

Top 15 - International Tourist Contribution 6M19

• No. of tourist arrivals to Thailand

Top 10 - International Tourist Arrivals growth (%) – 6M19

Millions FY 2018 38.3 2019 40.1 (F)* Growth +4.7%

Note: *Forecasting from Tourism Council of Thailand, 25 June 2019

Hotel demand and supply in Maldives

Hotel Business Overview Page 8

Arrival growth from all regions

Number of operational beds*

41,487 42,355 43,660 45,106 47,443

7% 8% 8% 10% 14%

• 200.0%
• 150.0%
• 100.0%
• 50.0%

Q2/18 Q3/18 Q4/18 Q1/19 Q2/19

• No. of operational beds

Bed growth yoy

Source: Ministry of Tourism, Republic of Maldives Note: * included hotels, resorts, guest houses and safari vessels

Unit: beds

Number of tourist arrivals and occupancy rate (yoy)

306,412 353,944 403,815 482,978 379,611 726,515 862,589 52% 57% 64% 75% 56% 63% 66%

• 500.00%
• 400.00%
• 300.00%
• 200.00%
• 100.00%

Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 6M18 6M19

• No. of arrivals

% Occupancy

Source: Ministry of Tourism, Republic of Maldives

Unit: persons 3% 4% 3% 15% 24% 11% 19%

Maldives tourism overview

Page 9

(Unit : Person) Source: Ministry of Tourism Republic of Maldives

Indian +100% yoy

Hotel Business Overview

Hotel portfolio – 13,783 rooms

Page 10

Upcoming overseas

In operation Pipeline Thailand Overseas Total Thailand Overseas Total Grand total Owned 15* 2 17 2 3 5 22 Managed 19 4 23 9 17 26 49 Total 34 6 40 11 20 31 71 In operation Pipeline Thailand Overseas Total Thailand Overseas Total Grand total Owned 3,940 252 4,192 412 911 1,323 5,515 Managed 2,738 786 3,524 1,628 3,116 4,744 8,268 Total 6,678 1,038 7,716 2,040 4,027 6,067 13,783

As of June 2019

54% Owned

Total portfolio by rooms

*Including JV and property fund

63% Thailand 40% Owned

Number of hotels Number of rooms In operation by rooms

87% Thailand

Hotel Business Overview

Pipeline – 6,067 rooms

11

Hotel Business Overview Page 11

AEC, Middle East and Indian Ocean

# of rooms Owned Managed Total Year 2019E 2021E 2022E 2019E 2020E 2021E 2022E Bali 210 210 Cambodia 240 240 China 596 596 Dubai 601 601 Laos 322 104 200 626 Maldives 310 234 544 Qatar 252 509 761 Turkey 449 449 Thailand 282 130 179 571 358 520 2,040 Total Rooms 282 731 310 431 1,402 1,058 1,853 6,067 Total Hotels 1 2 2 3 7 7 9 31

As of June 2019

Summary of pipeline 2019E-2022E

China 596 keys East Asia Turkey 449 keys West Asia Bali, Cambodia, Laos and Thailand 3,116 keys Southeast Asia Maldives 544 keys South Asia Doha and Dubai 1,362 keys Middle East

Total portfolio: number of rooms by region

*

* Target to open in October 2019

2,139 2,001 5,088 4,756 607 543 1,931 1,719

Q2/18 Q2/19 6M18 6M19

Total Revenue EBITDA 10.5% 6.5% 11.0% 6.5%

Hotel performance

12

Hotel Business Overview Page 12 36.1%

Unit: THB mn

EBITDA margin 27.1% Chinese, key feeder during low season, drops, together with the closure of Centara Grand Samui for renovation since June, Indirect impact from fire event at CentralWorld shopping mall and lower demand from government entities during changeover.

Impact from Soft demand & Closure for renovation

28.4% 37.9%

Total own portfolio

13

Hotel Business Overview Page 13

Q2/19 RevPar -6.4% from Occupancy

4,050 4,845 4,051 4,839 2,952 3,784 2,949 3,770 72.9% 78.1% 72.8% 77.9%

50% 55% 60% 65% 70% 75% 80%

Q2/19 6M19 Q2/19 6M19

Average Room Rate (ARR) Revenue Per Available Room (RevPar) Occupancy (OCC)

6.6% 2.0% 6.4% 4.6% 0.3% 5.9% 6.4% 4.7% 3.1% 5.2% 0.5% 5.2% Excluding Centara Grand Samui Including Centara Grand Samui

Thailand portfolio

14

Hotel Business Overview Page 14

Q2/19 RevPar -7.5% from occupancy

3,257 3,937 3,234 3,893 2,357 3,054 2,336 3,012 72.4% 77.6% 72.2% 77.4%

50% 55% 60% 65% 70% 75% 80%

Q2/19 6M19 Q2/19 6M19

Average Room Rate (ARR) Revenue Per Available Room (RevPar) Occupancy (OCC)

7.1% 1.6% 7.5% 5.1% 0.7% 6.9% 7.0% 5.2% 3.6% 5.5% 0.7% 5.7% Excluding Centara Grand Samui Including Centara Grand Samui

Bangkok portfolio

15

Hotel Business Overview Page 15

Q2/19 Revpar -7.9% from occupancy and room rate

2,879 3,093 2,207 2,430 76.6% 78.6%

50% 55% 60% 65% 70% 75% 80% 85%

Q2/19 6M19

Average Room Rate (ARR) Revenue Per Available Room (RevPar) Occupancy (OCC)

4.7% 7.9% 5.2% 0.2% 6.4% 2.3%

Upcountry portfolio

16

Hotel Business Overview Page 16

Q2/19 RevPar -7.2% from occupancy

3,466 4,365 3,439 4,325 2,433 3,365 2,404 3,319 70.2% 77.1% 69.9% 76.7%

50% 55% 60% 65% 70% 75% 80%

Q2/19 6M19 Q2/19 6M19

Average Room Rate (ARR) Revenue Per Available Room (RevPar) Occupancy (OCC)

8.4% 7.2% 5.1% 0.7% 6.9% 8.1% 5.3% 4.3% 5.4% 3.9% 6.8% 1.1% Excluding Centara Grand Samui Including Centara Grand Samui

Maldives portfolio

17

Hotel Business Overview Page 17

Q2/19 RevPar (USD) -3.5% from ARR

14,837 17,421 12,011 14,967 81.0% 85.9%

50% 55% 60% 65% 70% 75% 80% 85% 90%

Q2/19 6M19

Average Room Rate (ARR) Revenue Per Available Room (RevPar) Occupancy (OCC)

3.6% 7.1% 6.1% 4.3% 1.6% 3.1% 3.3% 3.5% 380 USD 473 USD

Hotel revenue breakdown by region

Page 18

32.5% 16.8% 15.9% 12.6% 6.8% 6.7% 6.4% 2.3% 32.9% 17.6% 15.9% 12.7% 7.4% 5.1% 6.2% 2.2% Bangkok Maldives Phuket Pattaya Hua Hin Samui Krabi Others

6M18 6M19

Total revenue

6M19 Bangkok Maldives Phuket Pattaya Hua Hin Samui Krabi Hat Yai Tak % RevPar Growth yoy

• 6.4%
• 3.6%
• 7.1%
• 7.3%

2.9%

• 21.7%
• 7.3%

1.2%

• 8.4%

Hotel Business Overview

done

82% of hotel revenue from Thailand

• 8.3%

Excluding Centara Grand Samui

Food busin iness

• verview

Q2/19: Portfolio of 1,007 outlets

Net expansion of 99 outlets (or +10.9% yoy), mainly from top 3 brands

Page 20 Food Business Overview Bangkok Non-Bangkok

65% Non-Bangkok 65% Non-Bangkok

Brands # of outlets Change yoy

KFC 272 +25 Mister Donut 364 +26 Auntie Anne’s 173 +22 Ootoya 46 +3 Pepper Lunch 41 +6 The Terrace 9 +1 Chabuton 19 +3 Yoshinoya 21 +4 Tenya 11 +5 Katsuya 28 +0 Cold Stone 18

• 1

Aroi Dee 4 +4 Suki House 1 +1 Total 1,007 +99 Number of outlets by location Revenue contribution by location

Food business performance

Growth from outlet expansion

Page 21 Food Business Overview 3,052 3,225 5,844 6,112 396 364 737 686

Q2/18 Q2/19 6M18 6M19

Total Revenue EBITDA 8.2% 5.7% 6.9% 4.6%

11.2%

Unit: THB mn

EBITDA margin 11.3% 13.0% 12.6%

SSS & TSS

Improvement quarter on quarter

Page 22 Food Business Overview Same store sale (SSS) and Total system sale (TSS) Same store sale (SSS): Bangkok vs Non-Bangkok

• 0.9%

3.3%

• 1.7%
• 4.1%
• 1.7%

0.2%

• 2.9%

0.5% 2.1%

• 1.7%
• 3.6%
• 1.8%
• 0.5%
• 2.7%
• 5.0%
• 4.0%
• 3.0%
• 2.0%
• 1.0%

Bangkok Non-Bangkok 0.0% 2.6%

• 1.7%
• 3.8%
• 1.8%
• 0.3%
• 2.8%

10.0% 12.5% 6.5% 3.4% 5.7% 9.0% 4.6%

• 6.0%
• 4.0%
• 2.0%

SSS TSS

2Q18 2Q18 3Q18 3Q18 4Q18 4Q18 1Q19 6M18 2Q19 6M18 6M19 1Q19 2Q19 6M19

Q2/19 food total revenue breakdown

Page 23

KFC, 57% Mister Donut, 14% OOTOYA, 8% Auntie Anne's, 7% Others, 14%

6M19

Food Business Overview

Light food showed improving trend in Q2

(+7.4% yoy) (+5.3% yoy) (+3.7% yoy) (+6.5% yoy) (-8.6% yoy)

KFC, 56% Mister Donut, 15% OOTOYA, 7% Auntie Anne's, 7% Others, 15%

Q2/19

(+7.3% yoy) (+7.6% yoy) (+6.1% yoy) (+9.0% yoy) (-3.7% yoy)

CAPEX & GUID IDANCE 2019 2019

3-year capital expenditure : THB 27bn

Page 25

• 2,000

4,000 6,000 8,000 10,000 12,000

2018A 2019E 2020E 2021E

Hotel Food Potential projects

Sufficient funding with loan/bond &

• perating cashflow

Financial Highlight 2020E 2019E 2021E

Centara Grand Central World

Renovation & Enhancement New Investment & Expansion

Centara Grand Samui Centara Grand Hua Hin* New investment in food brand(s) & hotel(s)* Food outlet expansion 2 new Centara Maldives Centara Dubai COSI Pattaya COSI Chiang Mai

CAPEX (THB mn)

Annual renovation for existing hotels Annual renovation for existing CRG’s outlets

Note: *potential projects are under feasibility study

…

CENTEL guidance 2019

Page 26 Financial Highlight 2018A 2019E - Revised Hotel RevPar (THB) 3,786*

• 4% to -5% yoy

(Excluding Centara Grand Beach Resort Samui and COSI Pattaya)

Food TSS 9.3%

5% to 7% yoy

Number of outlets 956

12% to 13% yoy Hotel:

• Open COSI Pattaya 282 rooms in October
• Revise target as a result of 1H19 performance softer than

expectation and uncertain tourists rebound in 2H19 Food:

• Outlet expansion drives the growth
• Focusing on delivery through own platform and food

aggregators

• Expansion of 2 new own brands:
• “Aroi Dee” targets to open 7-10 more outlets
• “Suki House” targets to open 2-3 more outlets

*Included COSI Samui and Centra Chaeng Watthana

Recovery in hotel business remains to be seen & high competition in food business

Q&A

27

Page 27 Q&A

More Information please Contract: Investor Relations department

Central Plaza Public Company Limited 25th Fl, Centara Grand at CentralWorld 999/9 Rama I Rd., Pathumwan Bangkok 10330 Thailand https://investor.centarahotelsresorts.com/ ir@chr.co.th

Disclaimer

This presentation contains certain forward looking statements. Such forward looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in the forward looking statements as a result of various factors and circumstances. The views, analyses and opinions expressed herein contain some information derived from publicly available sources and third party information providers. No representation or warranty is made as to the accuracy, completeness, or reliability of such information. This presentation should not be relied upon as any recommendation, view, opinion, representation or forecast of “Central Plaza Hotel Plc.” Nothing in this presentation should be construed as either an offer to sell, a solicitation of an offer to buy or sell shares or any type of securities in any

• jurisdiction. This presentation is not intended to be any type of investment advice and must not be relied upon as such. You

must always seek the relevant professional advice before otherwise making any such financial, legal or commercial decisions.

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Page 28

Appendix ix

Hotel revenue by asset type (Freehold & Leasehold)

Page 30 Appendix

0.9 9.5 13.5 34.3 5 10 15 20 25 30 35 40

Centara Grand Hua Hin Centara Grand Ladprao Centara Grand Central World COSI Samui

Remaining Years

Remaining leasehold life for Thailand hotels as at June 30, 2019

CHBR 7% CGLB 10% CGCW 20%

37% 0% 0% 46% 17%

2018 hotel revenue

Thailand freehold Thailand leasehold Maldives leasehold

Page 31 Appendix

Hotels in operation as at June 30, 2019 (1/3)

Owned hotels Stars Opened # of Rooms % Ownership Location 1 Centara Grand at Central Plaza Ladprao Bangkok 5 2Q83 565 100% Thailand 2 Centara Grand Resort & Villas Hua Hin 5 1Q86 249 64% Thailand 3 Centra by Centara Hotel Mae Sot* 3 4Q89 120 100% Thailand 4 Centara Hat Yai 4 4Q95 248 100% Thailand 5 Centara Grand Beach Resort Samui 5 2Q96 203 25% in Property Fund Thailand 6 Centara Villas Samui 4 2Q00 102 100% Thailand 7 Centara Villas Phuket 4 2Q00 72 100% Thailand 8 Centara Grand Beach Resort & Villas Krabi 5 4Q05 192 100% Thailand 9 Centara Kata Resort Phuket 4 2Q06 163 100% Thailand 10 Centara Karon Resort Phuket 4 2Q06 335 100% Thailand 11 Centara Grand at CentralWorld 5 4Q08 512 100% Thailand 12 Centara Grand Mirage Beach Resort Pattaya 5 4Q09 555 100% Thailand 13 Centara Grand Island Resort & Spa Maldives 5 4Q09 112 74% Maldives 14 Centara Grand Beach Resort Phuket 5 4Q10 262 100% Thailand 15 Centara Ras Fushi Resort & Spa Maldives 4 1Q13 140 75% Maldives 16 COSI Samui Chaweng Beach Affordable lifestyle 4Q17 150 100% Thailand 17 Centra by Centara Government Complex Hotel & Convention Centre Cheang Watthana 3 4Q12 212* 100% Thailand Total owned hotels 4,192

*after renovation since April 2019

Page 32 Appendix

Hotels in operation as at June 30, 2019 (2/3)

Managed hotels Stars Opened # of Rooms Country 18 Centara Chaan Talay Resort & Villas Trat 4 1Q08 44 Thailand 19 Centara Hotel & Convention Centre Udon Thani 4 2Q10 259 Thailand 20 Centara Q Resort Rayong 4 2Q10 41 Thailand 21 Khum Phaya Resort, Centara Boutique Collection Boutique 3Q10 87 Thailand 22 Waterfront Suites Phuket by Centara Residence 1Q11 39 Thailand 23 Centara Anda Dhevi Resort & Spa Krabi 4 4Q11 135 Thailand 24 Centara Pattaya Hotel 4 4Q11 152 Thailand 25 Centara Nova Hotel & Spa Pattaya 4 4Q11 79 Thailand 26 Centara Koh Chang Tropicana Resort 4 2Q12 157 Thailand 27 Centra Coconut Beach Resort Samui 3 3Q12 55 Thailand 28 Sandy Beach Non Nuoc Resort Danang Vietnam Managed by Centara 4 4Q12 204 Vietnam 29 Centara Watergate Hotel & Spa Bangkok 4 2Q13 281 Thailand 30 Centara Seaview Resort Khao Lak 4 2Q13 250 Thailand 31 Centara Grand Phratamnak Pattaya 5 3Q13 161 Thailand

Page 33 Appendix

Hotels in operation as at June 30, 2019 (3/3)

Managed hotels Stars Opened # of Rooms Country 32 Centara Blue Marine Resort & Spa Phuket 4 1Q14 266 Thailand 33 Centara Ceysands Resort & Spa Srilanka 4 2Q14 165 Sri Lanka 34 Centra by Centara Avenue Hotel Pattaya 3 4Q14 51 Thailand 35 Centra by Centara Maris Resort Jomtien 3 1Q16 282 Thailand 36 Centra by Centara Phu Pano Resort Krabi 3 4Q16 158 Thailand 37 Centara Azure Hotel Pattaya 4 4Q16 96 Thailand 38 Centara Muscat Hotel 4 2Q17 152 Oman 39 Centara West Bay Residences & Suites Doha Residence 4Q18 265 Qatar 40 Centara Sonrisa Residence and Suites Sriracha Residence 2Q19 145 Thailand Total managed hotels 3,524 Grand total 7,716

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