Central Plaza Hotel Public Company Limited Company Presentation as - - PowerPoint PPT Presentation

Central Plaza Hotel Public Company Limited

Company Presentation as at Q3-2017

14 November 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,

• pinion, 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. 2

Agenda

• Group Overview
• Hotel Business
• Food Business
• Financial Highlight and Outlook
• Appendix
• Current Hotel Portfolio

3

4

Group Overview

CENTEL – a member of Central Group, one of the five

largest business group in Thailand

Group Business

Yuwadee Chirathivat CEO Pascal Billaud CEO Suthisarn Chirathivat CEO Worawoot Ounjai CEO Preecha Ekkunagul CEO Edwin Yap Hawson CEO Thirayuth Chirathivat CEO Tos Chirathivat Group CEO Phillippe Broianigo CEO Nath Vongpanich President

Central Group: A family-held corporation that began life as a general merchandise store in 1947, and now has 70 years of experience in the retail industry.

Central Department Store Group Central Food Retails Group Central Hardlines Group Central Online Group Central Pattana Group Central Marketing Group Central Hotel & Resort Group

CENTEL

Central Restaurants Group Central Group Vietnam

5

CENTEL – Shareholding Structure and Historical Dividend

Payout

6

Dividend Payout Ratio: CENTEL Shareholder Structure

63%

13% 24%

As at 30 September 2017

Foreign Investors Local Investors Chirathivat Family Year Dividend (Bt/share) % Payout (Consolidated F/S) % Payout (Separate F/S) 2016 0.55 40% 77% 2015 0.50 40% 62% 2014 0.40 46% 82% 2013 0.40 40% 56% 2012 0.30 25% 58%

CENTEL’s MILESTONE introduced “Mister Donut” 1st hotel, “Centara Grand at Central Ladprao Bangkok” Authorized franchisee of KFC Franchisee of Auntie Anne’s Listed in The Stock Exchange of Thailand (SET) Capital increase of 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

• versea 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 d bus business Hotel bus 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

CENTEL - Key Milestone

7

CENTEL – Average profit growth at 14.8% p.a. during the

last 4 years

Note: *Core net profit after tax excluding:

• Extra - equity loss from Property Fund (Bt7.2mn in FY12 and Bt33.4mn in FY16), loss from guaranteed provision Bt40.4mn in FY12) and income from rent

adjustment Bt31.6mn in FY16);

• Gain from business combination of Centara Karon and Centara Grand Maldives in total of Bt579.3mn (FY12)

1,064 1,851

NPAT*

14,829 19,865

TOTAL REVENUE

3,017 4,315

EBITDA

Unit: Btmn

47%

53%

Total Revenue Hotel Food

68%

32% EBITDA Hotel Food

67%

33% Net Profit* Hotel Food 91%

9%

Revenue by Geography

Thailand FY16 - Contribution by Businesses – no significant change in contribution from FY2012 2012 2016 2012 2016 2012 2016 FY12 to FY16: average profit growth at 14.8% whilst top line increased at 7.6% per annum FY16

8

9

Hotel Business

Thailand Tourism- Strong recovery of Russian and

recent rebound of Chinese help drives the growth of hotel business in recent years.

10

22.5 26.5 24.8 29.9 32.6 35.3 24.8 26.1 17% 18%

• 6%

21% 9% 8% 18% 5%

• 100.00%
• 80.00%
• 60.00%
• 40.00%
• 20.00%

0.0 10.0 20.0 30.0 40.0 50.0 60.0 2012A 2013A 2014A 2015A 2016A 2017F* 9M16 9M17

• No. of Tourist Arrivals

Growth yoy

Tourist Arrivals Trend

Source: Ministry of tourism and sport, Thailand, **Forecasting from Economic Intelligence Center, SCB

Key Nationality movement (mn) 2012 2013 2014 2015 2016 9M16 9M17 Chinese 2.8 4.6 4.6 7.9 8.8 7.3 7.4 % Change yoy 60.4% 67.9%

• 71.2%

10.3% 19.6% 1.1% Russian 1.3 1.7 1.6 0.9 1,1 0.7 0.9 % Change yoy 24.4% 33.2%

• 8.0%
• 45.0%

23.3% 21.6% 24.9%

Source: TAT Millions 10

Thailand’s Tourism - Moving towards sustainability

2,115 2,414 2,345 2,795 2,907 3,096 16.3% 17.7% 19.3% 20.8% 20.6%

• 10.00%
• 5.00%

2012A 2013A 2014A 2015A 2016A 2017E

Total Contribution to GDP (THBbn) % of GDP

Thailand is expected to be the world’s 10th fastest growing country for travel and tourism industry over the next decade with an average growth rate of 6.5% p.a. (a new report in 2017 by the World Travel & Tourism Council (WTTC). Thailand World Ranking: Relative important of Travel & Tourism’s total contribution to GDP (Out of 185 Countries) 15th Absolute size in 2016 35th Relative size contribution to GDP in 2016 5th Growth 2017 forecast 10th Long-term growth forecast 2017-2027 Mass Tourism: The More, The Better De-Marketing: To improve quality of service and increase income Sustainable Tourism: The Same, The Better

• Higher quality of service
• Higher room rate charge
• Higher price of package tour
• Avoid abusing resources

11

12

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

Brands # of rooms- Owned/ JV Managed Total Year 2019 2020 2018 2019 2020 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 280 330 245 855 Total Rooms 280 550 867 1,597 591 3,885 Total Hotels 1 1 3 7 3 15

* including contracts on hand only

In Operation Pipeline

• No. of Hotels

Thailand Overseas Total Thailand Overseas Total Grand Total Equity owned 13 2 15 1

• 1

16 Joint Venture

• 1

1 1 Property Fund 1

• 1
• 1

Management contract 19 3 22 3 10 13 35 Total 33 5 38 4 11 15 53 In Operation Pipeline No.of Rooms Thailand Overseas Total Thailand Overseas Total Grand Total Equity owned 3,509 252 3,761 280

• 280

4,041 Joint Venture

• 550

550 550 Property Fund 202

• 202
• 202

Management contract 2,792 476 3,268 575 2,480 3,055 6,323 Total 6,503 728 7,231 885 3,030 3,885 11,116

As at 15 November 2017

Hotel Portfolio – Almost 4,000 rooms (+54%) will be

added by 2020.

90% Thailand In Operation by rooms 55% Owned + JV Total Portfolio by rooms 43% Owned + JV 66% Thailand Summary of Pipeline 2018-2020 12

Hotel Performance - Driving growth through room rate

Average Room Rate (Bt) 2014A 2015A 2016A %Chg 9M16 9M17 %Chg Bangkok 3,112 3,248 3,394 4.5% 3,339 3,402 1.9% Outside Bangkok 3,987 4,017 3,928

• 2.2%

3,892 4,112 5.6% Maldives 17,455 19,133 19,262 0.7% 19,227 18,682

• 3.1%

Thailand Average 3,766 3,781 3,768

• 0.4%

3,725 3,902 4.7% Total Average 4,855 4,809 4,851 0.9% 4,796 4,880 1.8% Occupancy (%) 2014A 2015A 2016A Chg 9M16 9M17 Chg Bangkok 61.6% 81.3% 81.2%

• 0.1%

82.7% 80.7%

• 2.0%

Outside Bangkok 78.9% 79.6% 81.8% 2.2% 82.6% 83.0% 0.4% Maldives 90.6% 81.5% 86.7% 5.1% 86.3% 82.4%

• 3.9%

Thailand Average 73.7% 80.1% 81.6% 1.5% 82.6% 82.3%

• 0.3%

Total Average 74.8% 80.2% 81.9% 1.7% 82.9% 82.3%

• 0.5%

RevPar (Bt) 2014A 2015A 2016A %Chg 9M16 9M17 %Chg Bangkok 1,917 2,642 2,755 4.3% 2,762 2,747

• 0.5%

Outside Bangkok 3,146 3,197 3,213 0.5% 3,214 3,412 6.2% Maldives 15,814 15,602 16,698 7.0% 16,629 15,394

• 7.4%

Thailand Average 2,775 3,030 3,075 1.5% 3,078 3,211 4.3% Total Average 3,632 3,858 3,975 3.0% 3,974 4,017 1.1% 9M17 Revpar growth is driven by Thai properties outside Bangkok.

13

Hotel Performance - Industry has become less volatility,

and thus our EBITDA.

2,636 2,951 2,934 2,374 2,315 31.7% 32.6% 31.7% 34.5% 34.1%

• 80.0%
• 60.0%
• 40.0%
• 20.0%

2,000 4,000 6,000 8,000 10,000 12,000 2014 2015 2016 9M16 9M17 EBITDA Total Revenue EBITDA margin 8,316 9,046 9,268 6,885 6,794

Note: Total revenue excluded deferred rental income from property fund: *Excluding Special Income Contribution from Rental Adjustment totaling Baht 31.6 million that was recorded in Q2/2016 ** Excluding revenue from insurance claim recorded in Q1/2017, totaling Baht 35.9 million, relating to flood damages at the Centara Grand Beach Resort, Phuket in Nov-16.

1.3% * * * 2.5%

14

Hotel Revenue by Location - Thailand non-Bangkok

hotels are key growth driver in 9M17.

30.7% 19.1% 15.5% 12.7% 7.3% 6.6% 5.7% 2.5%

29.9% 20.4% 14.8% 12.3% 6.9% 6.9% 6.1% 2.6%

Bangkok Maldives Phuket Pattaya Hua Hin Samui Krabi Others

FY15 FY16

15

Total Revenue

Bangkok, 29.9% Maldives, 20.4% Outside Bangkok, 49.6%

9M17 Bangkok Maldives Phuket Pattaya Hua Hin Samui Krabi Hat Hai Tak Total % RevPar Growth yoy

• 0.5%
• 7.4%

10.1% 11.3%

• 4.9%

6.1% 3.5%

• 8.2%

10.6% 1.1%

29.9% 20.3% 14.7% 12.4% 6.9% 7.3% 5.9% 2.6%

29.7% 18.8% 15.6% 13.4% 6.5% 7.4% 6.0% 2.5%

Bangkok Maldives Phuket Pattaya Hua Hin Samui Krabi Others

9M16 9M17

Bangkok, 28.5% Maldives , 18.7% Outside Bangkok, 52.8%

Total Revenue

36% 9% 31% 3% 15% 3% 3% 38% 9% 32% 4% 13% 3% 2%

5.8% 7.6% 4.8% 16.5%

• 12.5%

12.8%

• 26.2%
• 50.00%
• 40.00%
• 30.00%
• 20.00%
• 10.00%

Asia AUS EU Middle East THA USA Others

FY15 FY16 Growth yoy

Centara’s Guest Mix - More balanced mix between

Europe and Asian in the last few years.

By Room Nights: 2015 vs 2016 Not only number of guests arrivals to the hotels, but the length of stay has been reflected in Centara’s guest mix. By Room Nights: 9M16 vs 9M17 37% 9% 31% 4% 14% 3% 2% 38% 9% 30% 4% 13% 3% 2%

1.9%

• 4.4%
• 2.5%

6.7%

• 4.5%
• 12.7%

8.2%

• 50%
• 40%
• 30%
• 20%
• 10%

Asia AUS EU Middle East THA USA Others

9M16 9M17 Growth yoy

16

COSI - New Development

17

Concept Great value and Quality accommodation and Safety - A sense

• f personal safety and privacy

Room All COSI hotels feature 18 sqm and 21 sqm room types with a choice of Deluxe King or Deluxe Twin Beds. With simple, natural materials and removal of cutter, the guest rooms are refreshing with a bright, comfortable ambience. Facilities Pool/ The Go Shop for everyday amenities/ Relaxing Living Room for mixing and mingling/ 24-hour Gym in all city location/ Self-service laundry and ironing room/ Self-service work stations Target Customer Independent Savvy Traveller Location Convenient Location - Ability to explore local culture or to conduct business Budget Distribution Channel Generally prefers to make bookings over the internet

Highlights Location 15 minutes from the airport and next to Central Festival, Samui’s biggest shopping centre. Number of rooms 151 rooms Rooms/Facilities

• 2 room types – 18 sqm and

21 sqm

• Choice of equally

comfortable king or twin beds

• Power Shower/ Smart TV/

Retro fridge

• Free Wi-Fi/ USB ports/

Digital in-room safe Eat, Drink, Play, Connect The hotel’s Hub is a combination between café and digital play space with Free Wi-Fi, designed for relaxing, watching a movie, having a sip or a bite and connecting with friends. You can splash or soak in the rooftop

• pool. Wash your duds at 3am in

the 24/7 Laundromat. Have a snack in the Hub’s WYSIWYG Café whenever you want.

Cosi Samui Chaweng Beach – scheduled to open

• n 1 December 2017

18

PULIC AREA FLOOR MEZZANINE FLOOR

19

Food Business

35% Bangkok

Food Portfolio - 35% of revenue are from Bangkok.

20

Heavy Food Light Food KFC Ootoya Pepper Lunch The Terrace Chabuton Yoshinoya Tenya Katsuya Mister Donut Auntie Anne’s Cold Stone Brands # Outlets KFC 229 Mister Donut 326 Auntie Anne’s 145 Ootoya 41 Pepper Lunch 27 Cold Stone 20 The Terrace 9 Chabuton 15 Yoshinoya 12 Tenya 7 Katsuya 15 Total 846 4% West 7% North 56% Central 10% East 16% Northeast 8% South Outlets and Revenue Contribution: For 9M17, 35% of total outlets and revenue contribution are from Bangkok. 35% Bangkok

• No. of outlets by Location

By Location By Revenue

As at 30 September 2017

Contribution from Bangkok

Food Performance - EBITDA margin continued to

improve despite flat SSS growth during the past 2 years.

1.4%

• 0.7%-0.1%

1.4%

• 2.0%

9.3% 2.0% 4.3% 5.8% 1.6% 781 792 830 806 846

• 7.0%
• 2.0%

FY14 FY15 FY16 9M16 9M17 SSS TSS # of outlets

21

937 1,258 1,381 1,023 1,101 9.4% 12.4% 13.0% 12.8% 13.6%

• 10.00%
• 5.00%

2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 2014 2015 2016 9M16 9M17 EBITDA Total Revenue EBITDA margin 9,967 10,170 10,597 7,983 8,121 Profit and Loss Trend Performance Trend (Unit: Btmn) +5.0%

*Revised figures

* * +1.7% +4.8% +7.6%

Total Revenue by Brand - Top 4 brands continue to

dominate portfolio whilst other small brands are expected to grow their contribution.

22

9M17 KFC Mister Donut Ootoya Auntie Anne’s Other heavy food* Other light food** Total #Outlets 229 326 41 145 85 20 846 Y-o-Y growth (#outlet) 8.5% 1.6%

• 4.7%

9.0% 6.3% 11.1% 5.0% 55% 19% 8% 7% 9% 2% 55% 17% 8% 7% 11% 3%

KFC MD OOTOYA AA Other Heavy Food Other Light Food

FY15 FY16 56% 17% 8% 7% 9% 3% 56% 16% 7% 7% 11% 2%

KFC MD OOTOYA AA Other Heavy Food Other Light Food

9M16 9M17

*Other heavy food included Pepper Lunch, Chabuton, The Terrace, Yoshinoya, Tenya and Katsuya. **Other light food included Cold Stone.

23

Financial Highlight and Outlook

Debt Profile – Low gearing ratios give capacity for

expansion

240 4,980 1,808 O/D and ST/L Debentures LT/L

24

As at 30 September 2017, Bt7.0bn Interest Bearing Debt with Average Cost of Debt at 2.3% Loan breakdown by type Loan breakdown by type Key financial ratios FY16 3Q17 Net Debt*/Equity 0.89 0.76 IBD/Equity 0.70 0.60 Net Debt*/ EBITDA** 2.29 1.95

*excl. amortized deferred income from property fund **annualized of core profit after tax and Excluded extra gain from equity gain property fund 31.5mn

93%

Long Term Debt

77%

Fixed Rate

14%

USD Loan (Maldives projects)

CAPEX – Baht 1.7bn CAPEX is budget for 2017

25 Note: Excluded JVs in Dubai and M&A Project

Hotel Business: Revised Bt760mn

• Annual Renovation CAPEX Bt510mn
• Cosi Samui Bt220mn
• Cosi Pattaya Bt30mn (total project cost Bt620mn)

Food Business: Revised Bt940mn

• Annual Renovation CAPEX of Bt215mn
• New Outlet Expansion Bt635mn
• Others Bt90mn

Guidance 2017 -2018

26

2018: Organic growth plus potential upside from M&A

* Revised figure

Hotel FY16A FY17E – No Change FY18E Occupancy 81.9% 81%-82% 81%-82% RevPar 3.0% 2%-3% 3% - 4% Food FY16A FY17E – No Change FY18E SSS

• 0.1%*

Flat 2% - 3% TSS 4.3% 5%-6% 7% - 8% Outlet Expansion 4.8% 7% 7% - 8% 2018 Highlights: Hotel:

• Organic growth driven by room rate
• New hotels:
• 1st full year operation of COSI Samui
• 151 rooms
• Potential new hotel - Centra by

Centara Government Complex Hotel and & Convention Centre Chaeng Watthana

• 204

rooms (pending contract negotiation) Food:

• Domestic consumption is expected to

continue gaining momentum (start to see positive trend since 3Q17).

• Expecting

benefits from Thailand’s economy growth trend and general election at the end of 2018

Development Highlights & 2021 target

27

2012 2021E 2017E Food Hotel Total 677 Outlets Total 884 Outlets Target > 1,100 Outlets Total 6,579 rooms Target > 14,000 rooms Total 11,116 rooms (Operating 7,231 + in Pipeline 3,885 rooms)

28

Appendix

Hotels in operation by the end of 2017 (1/3)

Owned and Investment in Property Fund Hotels Ratings (stars) Commencement

• f operation

# 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 Centara Mae Sot Hill Resort 4 4Q89 113 100% Thailand 4 Centara Hat Yai 4 4Q95 245 100% Thailand 5 Centara Grand Beach Resort Samui 5 2Q96 202 25% in Property Fund Thailand 6 Centara Villas Samui 4 2Q00 100 100% 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 158 100% 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 151 100% Thailand Total 3,963 29 Summary # of Properties # of Rooms Owned hotels 16 3,963 Managed hotels 22 3,268 Grand total 38 7,231

Managed Hotels Ratings (stars) Commenc ement of

• peration

# of Rooms % Owned Country 17 Centara Chaan Talay Resort & Villas Trat 4 1Q08 44

• Thailand

18 Centara Hotel & Convention Centre Udon Thani 4 2Q10 259

• Thailand

19 Centara Q Resort Rayong 4 2Q10 41

• Thailand

20 Khum Phaya Resort, Centara Boutique Collection Boutique 3Q10 87

• Thailand

21 Waterfront Suites Phuket by Centara Residenc e 1Q11 39

• Thailand

22 Centara Anda Dhevi Resort & Spa Krabi 4 4Q11 135

• Thailand

23 Centara Pattaya Hotel 4 4Q11 152

• Thailand

24 Centara Nova Hotel & Spa Pattaya 4 4Q11 79

• Thailand

25 Centara Koh Chang Tropicana Resort 4 2Q12 157

• Thailand

26 Centra Coconut Beach Resort Samui 3 3Q12 55

• Thailand

27 Sandy Beach Non Nuoc Resort Danung Vietnam Managed by Centara 4 4Q12 159

• Vietnam

28 Centra by Centara Government Complex Hotel & Convention Centre Cheang Watthana 3 4Q12 204

• Thailand

29 Centara Watergate Hotel & Spa Bangkok 4 2Q13 281

• Thailand

30 Centara Seaview Resort Khao Lak 4 2Q13 245

• Thailand

31 Centara Grand Phratamnak Pattaya 5 3Q13 161

• Thailand

30

Hotels in operation by the end of 2017 (2/3)

Managed Hotels Ratings (stars) Commencemen t of operation # of Rooms % Owned 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

Total Managed Hotel 3,268 Grand Total 7,231 31

Hotels in operation by the end of 2017 (3/3)

hank ou

32

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