Central Plaza Hotel Public Company Limited Opportunity Day - - PowerPoint PPT Presentation

Central Plaza Hotel Public Company Limited

Opportunity Day Presentation: Q217

28 August, 2017

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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Content

1

• Financial Summary

2

• Business Performance

3

• Business Outlook

4

• Appendix

3

Consolidated Earning Q217 and 1H17

Note: Total revenue excluded deferred rental income from property fund

4

36% 42% 71% 70% 64% 58% 29% 30% Q216 Q217 1H16 1H17 54% 56% 70% 70% 46% 44% 30% 30% Q216 Q217 1H16 1H17 41% 42% 47% 47% 59% 58% 53% 53% Q216 Q217 1H16 1H17 Hotel Food

Contribution by Business

Total Revenue EBITDA Before Extra Item Net Profit After Tax Before Extra Item THB million Q216 Q217 % Chg 1H16 1H17 % Chg. Total Hotel revenue* 1,986.0 2,001.5 0.8% 4,788.6 4,699.7

• 1.9%

Total Food Revenue 2,857.4 2,772.8

• 3.0%

5,360.7 5,359.6

• Total Revenues

4,843.4 4,774.2

• 1.4%

10,149.3 10,059.3 -0.9% EBITDA before Extra Item 877.6 863.4

• 1.6%

2,336.3 2,293.7

• 1.8%

EBITDA (%) 18.1% 18.1% NA 23.0% 22.8% NA Net Profit before Extra Item 322.4 398.4 23.6% 1,080.1 1,145.4 6.1% Special Income Contribution from Rental Adjustment- Property fund 31.6

• NA

31.6

• NA

Revenue from Insurance claim related to flood at Centara Grand Beach, Phuket in Oct-Nov2016

• 35.9

NA Reported Net Profit 354.0 398.4 12.5% 1,111.7 1,181.3 6.3% EPS (Baht/ share) 0.26 0.30 15.4% 0.82 0.88

• 6.8%

Note: Total revenue excluded deferred rental income from property fund

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Financial Position as at 30 June, 2017

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24,397 13,280 11,117 23,800 12,516 11,283 Total Asset Total Liability Total Equity 31-Dec-16 30-Jun-17 Unit: Btmn Balance Sheet Summary Summary of Debt Profile Interest bearing debt (“IBD”) was Bt7,135mn with an average cost of debt of 3.1%. Key financial ratios 31-Dec-16 31-Jun-17 Net Debt*/Equity 0.89 0.85 Net Debt*/EBITDA** 2.29 2.26 IBD/Equity 0.70 0.63 Fixed rate 57% *excl. amortized deferred income from property fund **annualized and excluding extra items

Hotel Business

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Tourist Arrivals Trend

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8.2 7.8 9.2 8.1 13.1%

• 0.9%

1.7% 7.6%

• 1.00%

4.00% 9.00% 14.00% 5 10

Q316 Q416 Q117 Q217 Tourist Arrivals (Million Persons) Growth yoy

Number of Tourist Arrivals

Million Persons Q316 Q416 Q117 Q217 Chinese 2.4 1.4 2.4 2.3 % growth yoy 14.5%

• 20.7%
• 7.2%

0.1% Russian 0.2 0.4 0.5 0.2 % growth yoy 35.8% 26.5% 36.5% 19.2%

Guest Nationality: Market vs Centara

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Industry: Arrivals by nationality Industry: Chinese & Russian Arrivals Trend Region 1H16 1H17 East Asia 64.1% 61.9% Europe 23.2% 24.2% Americas 4.4% 4.9% South Asia 3.7% 4.3% Oceania 2.3% 2.2% Middle East 1.9% 2.1% Africa 0.4% 0.4% Total 100% 100%

• No. of tourists

(million persons) 1H16 1H17 %Chg Chinese 2.6 2.4

• 7.2%

Russian 0.4 0.5 36.5% 36% 5% 39% 3% 12% 3% 2% 34% 5% 40% 4% 12% 3% 2% 0.02%

• 5.7%
• 0.01%

2.4%

• 4.2%
• 15.2%
• 13.8%
• 20.00%
• 10.00%

ASIA AUS EU MIDDLE EAST THA USA OTHERS

1H16 1H17 % Growth yoy

Centara Thailand ’s Guest Mixes by Major Nationality

Hotels Portfolio as of 1 August, 2017

9 90% 67% 10% 33%

1 2

• No. of rooms by Location

Thailand Overseas

Category 5 Stars 4 Stars 3 Stars Economy Independent Travelers Extended Stay Brands

# of rooms 2H17 2018 2019 Total Cambodia 240 240 China 250 346 596 Cuba 245 245 Doha 622 514 1,136 Dubai 550 550 Laos 162 162 Maldives 101 101 Thailand 151 150 991 1,292 Total Rooms 151 1,267 2,904 4,322 Total Hotels 1 5 11 17

In Operation Pipeline

• No. of Hotels

Thailand Overseas Total Thailand Overseas Total Grand Total Equity owned 12 2 14 2

• 2

16 Joint Venture

• 1

1 1 Property Fund 1

• 1
• 1

Management contract 19 3 22 4 10 14 36 Total 32 5 37 6 11 17 54

In Operation Pipeline

No.of Rooms Thailand Overseas Total Thailand Overseas Total Grand Total Equity owned 3,358 252 3,610 431

• 431

4,041 Joint Venture

• 550

550 550 Property Fund 202

• 202
• 202

Management contract 2,792 476 3,268 861 2,480 3,341 6,609 Total 6,352 728 7,080 1,292 3,030 4,322 11,402 54% 42% 46% 58%

In Operation In operation + current pipeline

• No. of rooms by ownership

Equity owned Management contract

• incl. contracts on hand only / Cosi samui plan to open in 2017 and Cosi Pattaya in 2019

Hotel Performance Q217 and 1H17

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OCC (%) Q216 Q217 Chg (Pt) 1H16 1H17 Chg (pt) Bangkok 78.6% 73.4%

• 5.2%

81.8% 78.7%

• 3.1%

Outside Bangkok 78.1% 80.8% 2.7% 83.0% 83.3% 0.3% Maldives 81.5% 76.8%

• 4.7%

83.4% 78.7%

• 4.7%

Average Thailand 78.2% 78.5% 0.3% 82.6% 81.9%

• 0.7%

Average Total 78.4% 78.4% 0.0% 82.7% 81.7%

• 1.0%

Revpar (THB) Q216 Q217 %Chg 1H16 1H17 %Chg Bangkok 2,657 2,545

• 4.2%

2,778 2,711

• 2.4%

Outside Bangkok 2,565 2,807 9.4% 3,507 3,708 5.7% Maldives 13,629 13,332

• 2.2%

17,305 15,902

• 8.1%

Average Thailand 2,593 2,728 5.2% 3,285 3,407 3.7% Average Total 3,323 3,429 3.2% 4,213 4,233 0.5% ARR (THB) Q216 Q217 %Chg 1H16 1H17 %Chg Bangkok 3,383 3,469 2.6% 3,397 3,447 1.5% Outside Bangkok 3,285 3,475 5.8% 4,223 4,450 5.4% Maldives 16,718 17,353 3.8% 20,743 20,200

• 2.6%

Average Thailand 3,315 3,473 4.8% 3,976 4,159 4.6% Average Total 4,236 4,372 3.2% 5,095 5,181 1.7%

• Performance of Centara Grand at Central World has been impacted

from new supply in the area. For Centara Grand Ladprao, the road construction in that area and the lower budget from government and corporate impact the performance of the hotel. Bangkok Hotels outside Bangkok reported a solid RevPar growth at 9.4% yoy. Only Hua Hin and Hat Yai reported negative RevPar growth. TH-Non Bangkok Big growth in Revpar for Centara Grand Maldives in Q217 from recovering of Chinese guests and low base from renovation last year. Maldives

Performance highlights:Q2-17

Hotel Financial Highlights Q217 & 1H17

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1,986 [VALUE] 4,789 4,700

Q216 Q217 1H16 1H17

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Total Revenue (THBmn) EBITDA (THBmn) NPAT (THBmn) 473 480 1,641 1,595 23.8% 24.0% 34.3% 33.9%

• 10.0%
• 5.0%

Q216 Q217 1H16 1H17

EBITDA EBITDA margin 117 169 769 805 5.9% 8.5% 16.1% 17.1%

• 20.0%
• 15.0%
• 10.0%
• 5.0%

Q216 Q217 1H16 1H17

NPAT NPAT margin Total Revenue Q217: Total revenue increased by 0.8% yoy., mainly driven by performances of Centara Grand Maldives, Centara Grand Pattaya and Phuket hotels 1H17: Total revenue dropped by 0.9% yoy mainly because of performance of Maldives, Hua Hin and Centara Grand Central World. EBITDA Q217: EBITDA before extra item improved by 1.6% yoy, mainly contributed by Centara Grand Pattaya and Centara Grand Maldives. 1H17: EBTDA before extra item decreased by 2.8% yoy mainly due to performance of Centara Grand Hua Hin, Centara Grand Central World and Maldives. NPAT Q217: Net profit before extra item increased by 44.4% mainly due to decrease in interest expense and tax. 1H17: Net profit before extra item improved by 4.7% due to interest expense and tax saving. 0.8% 0.9% 2.8% 1.6%

* * * *

44.4%

**

** **

* Excluding Extra item from Special Income Contribution from Rental Adjustment- Property fund of 31.6mn in Q216 ** Excluding Revenue from Insurance Claim 35.9mn in 1Q17 related to flood in Centara Grand Phuket in Oct/Nov16

4.7%

28.4% 20.3% 15.6% 12.5% 7.4% 7.1% 6.4% 2.5% 28.5% 18.7% 16.9% 13.1% 6.7% 7.1% 6.5% 2.4% Bangkok Maldives Phuket Pattaya Hua Hin Samui Krabi Others 1H16 1H17

Total Revenue by Location: 1H17

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Bangkok Maldives Phuket Pattaya Hua Hin Samui Krabi Hat Hai Tak Total # of Rooms 1,077 252 827 555 249 302 192 245 113 3,812 % Contribution by Rooms 28.3% 6.6% 21.7% 14.6% 6.5% 7.9% 5.0% 6.4% 3.0% 100% % RevPar Growth 1H16-17

• 2.4%
• 8.1%

11.5% 9.9%

• 8.5%

6.6% 3.5%

• 8.2%

14.2% 0.5% Bangkok 28% Maldives 19% Outside Bangkok 53%

Total Revenue

1H17

Food Business

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Food Portfolio as at 30 June, 2017

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Heavy Food Light Food KFC Ootoya Pepper Lunch The Terrace Chabuton

Yoshinoya

Tenya Katsuya Mister Donut Auntie Anne’s Cold Stone

Outlets and Revenue Contribution: 35% of total outlets and 36% of total food revenue are from Bangkok

35%

Bangkok Contribution

Bangkok Upcountry

36%

By Location By Revenue

Bangkok Upcountry

Brands # Outlets KFC 223 Mister Donut 321 Auntie Anne’s 139 Ootoya 41 Pepper Lunch 26 Cold Stone 19 The Terrace 9 Chabuton 15 Yoshinoya 13 Tenya 5 Katsuya 13 Total 824 3% in the West 7% in the North

57%

in Central 10% in the East 15% in Northeast 8% In the South

Food Performance Q217 and 1H17

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Summary of Key Performance Indicators

SSS TSS % Q216* Q217 1H16* 1H17 Q216* Q217 1H16* 1H17 Top 4 Brands 3.2%

• 6.7%

1.6%

• 4.2%

6.2%

• 3.7%

4.1%

• 1.2%

Others 5.2%

• 1.3%

4.7%

• 0.3%

27.7% 0.0% 21.2% 6.4% Average 3.4%

• 6.2%

1.9%

• 3.9%

8.4%

• 3.2%

5.9%

• 0.3%

# of outlets Top 4 brands Others Total 2Q16 704 97 801 2Q17 724 100 824 Outlet Change 20 3 23

* Revised figures

SSS Growth: BKK vs Upcountry

4.0%

• 3.8%

1.3%

• 1.4%

3.1%

• 7.5%

2.2%

• 5.3%

BKK Outside Bangkok

Key Factors impacting performance SSS:Q217

• High Base in April from stimulus package last year
• 2 less holidays in May compared to last year

Key Factors impacting performance TSS:Q217

• Although number of outlets grew by 2.9% yoy, total revenue

dropped by 3% yoy because of high negative SSS particularly from

• utside Bangkok.

Q216 Q217 1H16 1H17

Food Financial Highlights Q217 & 1H17

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Total Revenue (THBmn) EBITDA (THBmn) NPAT (THBmn) 2,857 [VALUE] 5,361 5,360

Q216 Q217 1H16 1H17

405 383 695 698 14.2% 13.8% 13.0% 13.0%

• 20.0%
• 15.0%
• 10.0%
• 5.0%

Q216 Q217 1H16 1H17

EBITDA EBITDA margin 205 229 311 340 7.2% 8.3% 5.8% 6.3%

• 20.0%
• 15.0%
• 10.0%
• 5.0%

Q216 Q217 1H16 1H17

NPAT NPAT margin Total Revenue Q217: Total revenue dropped by 3.0% yoy mainly due to lower revenue from KFC and Mister donut. 1H17: Total revenue maintained at THB 5,360 mn. Revenue from KFC, Pepper lunch, Tenya, Katsuya and CRGM improved yoy. EBITDA Q217: EBITDA decreased by 5.3% yoy mainly from KFC. 1H17: EBITDA improved by 0.4% yoy . All brands reported EBITDA improvement except KFC, Mister Donut and Auntie Anne’s. NPAT Q217: Net profit after tax improved by 11.7% yoy as a result of the reversal for over accrued tax booked in FY16. 1H17: Net profit after tax grew 9.3% yoy mainly due to the reduction of tax expenses. 3.0% 5.3% 0.4% 11.7% 9.3%

56% 17% 8% 7% 9% 3% 56% 16% 7% 7% 11% 3% KFC MD OOTOYA AA Other Heavy Food Other Light Food 1H16 1H17

Total Revenue Contribution by Brand

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*Heavy food included Pepper Lunch, Chabuton, The Terrace, Yoshinoya, Tenya and Katsuya **Light food included Cold Stone and CRGM

1H17 KFC Mister Donut Ootoya Auntie Anne’s Other heavy food* Other light food** Total #Outlets 223 321 41 139 81 19 824 Y-o-Y growth (#outlet) 7.2% 0.6%

• 8.9%

5.3% 2.5% 5.6% 2.9%

Business Outlook

18

CAPEX Plan 2017

19

Hotel Business: Revised Bt750mn to Bt850mn

• Annual Renovation CAPEX Bt500mn-Bt600mn
• Cosi Samui Bt220mn
• Cosi Pattaya Bt30mn (total project cost Bt620mn)

Food Business: Revised Bt1,115mn

• Annual Renovation CAPEX of Bt320mn
• New Outlet Expansion Bt635mn
• Others Bt160mn

Guidance 2017

20

2017: Organic growth plus potential upside from M&A

* Revised figure

Hotel FY16A FY17E – No Change Occupancy 81.9% 81%-82% RevPar 3.0% 2%-3% Revenue from operation 2.5% 2%-3% Food FY16A FY17E – Revised SSS

• 0.1%*

Flat TSS 4.3% 5%-6% Outlet Expansion 4.8% 7%

Highlights: Hotel:

• Recovery sign of Maldives based on advance booking from

existing and new feeder markets.

• Positive outlook of Thai tourism
• Bangkok: good pick up and booking on hand.
• Outside Bangkok: continue its strong outlook in
• 2H17. Hua Hin started to see some recovery.
• Stimulus package will promote domestic tourists.
• Low base in Q416
• Mourning period in Q416
• Temporary closed Centara Grand Beach Resort,

Phuket for 3 weeks in November due to the flood.

• Expecting to maintain EBITDA margin at 32%

Food:

• Low base and focus on outlet expansion in 2H17
• Assumed stimulus package to revitalize economy in Q417
• Expecting to maintain EBITDA margin at 13.5% or up by 50

basis points from last year through improvement of efficiency and revenue growth in 2H17.

Development Highlights

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2012 2021E 2017E Food Hotel

Total 677 Outlets Total 889 Outlets Target > 1,100 Outlets Total 6,579 rooms Total 7,231 rooms

+ in Pipeline 4,171 rooms

Target > 14,000 rooms

Appendix

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Hotels in operation as at 1 August, 2017

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Owned and Property Fund Hotels Stars Operated # of Rooms % Owned Country 1 Centara Grand at Central Plaza Ladprao Bangkok 5 Q283 565 100% Thailand 2 Centara Grand Resort & Villas Hua Hin 5 Q186 249 64% Thailand 3 Centara Mae Sot Hill Resort 4 Q489 113 100% Thailand 4 Centara Hat Yai 4 Q495 245 100% Thailand 5 Centara Grand Beach Resort Samui 5 Q296 202 25% in Property Fund Thailand 6 Centara Villas Samui 4 Q200 100 100% Thailand 7 Centara Villas Phuket 4 Q200 72 100% Thailand 8 Centara Grand Beach Resort & Villas Krabi 5 Q405 192 100% Thailand 9 Centara Kata Resort Phuket 4 Q206 158 100% Thailand 10 Centara Karon Resort Phuket 4 Q206 335 100% Thailand 11 Centara Grand at CentralWorld 5 Q408 512 100% Thailand Summary # of Properties # of Rooms Owned hotels 15 3,812 Managed hotels 22 3,268 Grand total 37 7,080

Hotels in operation as at 1 August, 2017

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Owned and Property Fund Hotels Stars Operated # of Rooms % Owned Country 12 Centara Grand Mirage Beach Resort Pattaya 5 Q409 555 100% Thailand 13 Centara Grand Island Resort & Spa Maldives 5 Q409 112 74% Maldives 14 Centara Grand Beach Resort Phuket 5 Q410 262 100% Thailand 15 Centara Ras Fushi Resort & Spa Maldives 4 Q113 140 75% Maldives Total Owned and Property Fund 3,812

Hotels in operation as at 1 August, 2017

25

Managed Hotels Stars Operated # of Rooms % Owned Country 16 Centara Chaan Talay Resort & Villas Trat 4 Q108 44

• Thailand

17 Centara Hotel & Convention Centre Udon Thani 4 Q210 259

• Thailand

18 Centara Q Resort Rayong 4 Q210 41

• Thailand

19 Khum Phaya Resort, Centara Boutique Collection Boutique Q310 87

• Thailand

20 Waterfront Suites Phuket by Centara Residence Q111 39

• Thailand

21 Centara Anda Dhevi Resort & Spa Krabi 4 Q411 135

• Thailand

22 Centara Pattaya Hotel 4 Q411 152

• Thailand

23 Centara Nova Hotel & Spa Pattaya 4 Q411 79

• Thailand

24 Centara Koh Chang Tropicana Resort 4 Q212 157

• Thailand

25 Centra Coconut Beach Resort Samui 3 Q312 55

• Thailand

26 Sandy Beach Non Nuoc Resort Danung Vietnam Managed by Centara 4 Q412 159

• Vietnam

27 Centra by Centara Government Complex Hotel & Convention Centre Cheang Watthana 3 Q412 204

• Thailand

28 Centara Watergate Hotel & Spa Bangkok 4 Q213 281

• Thailand

29 Centara Seaview Resort Khao Lak 4 Q213 245

• Thailand

30 Centara Grand Phratamnak Pattaya 5 Q313 161

• Thailand

Hotels in operation as at 1 August, 2017

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Managed Hotels Stars Operated # of Rooms % Owned Country 31 Centara Blue Marine Resort & Spa Phuket 4 Q114 266

• Thailand

32 Centara Ceysands Resort & Spa Srilanka 4 Q214 165

• Sri Lanka

33 Centra by Centara Avenue Hotel Pattaya 3 Q414 51

• Thailand

34 Centra by Centara Maris Resort Jomtien 3 Q116 282

• Thailand

35 Centra by Centara Phu Pano Resort Krabi 3 Q416 158

• Thailand

36 Centara Azure Hotel Pattaya 4 Q416 96

• Thailand

37 Centara Muscat Hotel 4 Q217 152

• Oman

Total Managed Hotel 3,268 Grand Total

hank ou

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For more information visit: http://centel.listedcompany.com/ or e-mail: ir@chr.co.th