Company Presentation May 2011 AGENDA 1Q11 Results Review Business - - PowerPoint PPT Presentation

• ST. REGIS MEETS BANGKOK
• ST. REGIS MEETS BANGKOK

Company Presentation

May 2011

AGENDA

1Q11 Results Review Business Updates & Outlook Appendix

2

Anantara Kihavah, Maldives

1Q11 Results Review

3

The St. Regis Bangkok

6,000 8,000

1Q11 Results

RECORD QUARTERLY REVENUE

5,326 4,412 5,296 THB Million

+26% YoY +26% QoQ

6,686 MINT REPORTED RECORD QUARTERLY REVENUES IN 1Q11, AN INCREASE OF 26% YoY, ATTRIBUTABLE TO GROWTH IN ALL BUSINESSES, IN PARTICULAR THE HOTEL AND MIXED-USE BUSINESS

Restaurant 44% Hotel & Mixed Retail Trading 13%

% Revenue Contribution

• 2,000

4,000 1Q10 2Q10 3Q10 4Q10 1Q11 Restaurant Hotel & Mixed Use Retail Trading 4

4,055 4,412

Mixed Use 43%

Revenue increased by 26% YoY, as a result of: Gradual recovery of hotel business, partly supported by the improvement in the tourism industry; Recognition of sales of St. Regis residential units; Commencement of sales of Anantara Vacation Club; Strong growth of restaurant business; Impressive same store sales growth of existing retail trading brands, together with increased contribution from GAP; Resumption of contract manufacturing orders

1Q11 Results

RECORD QUARTERLY EBITDA

+19% YoY +43% QoQ

EBITDA INCREASED BY 19% YoY PRIMARILY PROPELLED BY THE HOTEL AND MIXED-USE BUSINESS, WHILE EBITDA MARGIN DECLINED SLIGHTLY YoY OWING MAINLY TO PRE-OPENING EXPENSES OF TWO NEW HOTELS AND ANANTARA VACATION CLUB

800 1,200 1,600

THB Million

Restaurant 31% Hotel & Mixed Use 65% Retail Trading 4%

EBITDA Contribution

1,270 1,056 1,506 5

EBITDA increased by 19% YoY, as a result of: Recovery of occupancy of existing hotels (excluding newly-opened hotels), although the pre-opening expenses of two new hotels mitigated such positive effect; Recognition of sale of St. Regis residential units Better performance of the retail trading and contract manufacturing businesses from higher

• perating efficiency and operating leverage
• 400

800 1Q10 2Q10 3Q10 4Q10 1Q11 Restaurant Hotel & Mixed Use Retail Trading 22.5% EBITDA Margin 23.8% 15.2% 15.6% 19.9% 617 690

1Q11 Results

RECORD QUARTERLY NET PROFIT

THB Million

+37% YoY +90% QoQ

MINT REPORTED RECORD QUARTERLY NET PROFIT IN 1Q11, WHICH ROSE 37% YoY, WHILE NET PROFIT MARGIN ALSO EXPANDED TO 12.3%, HELPED BY IMPROVED PERFORMANCE OF ALL THREE BUSINESS UNITS, TOGETHER WITH LOWER EFFECTIVE TAX RATE

600 800 1,000 600 433

823

Restaurant 26%

Hotel & Mixed Use Retail Trading 4%

Net Profit Contribution

6

Net profit increased by 37% YoY, as a result of: Improvement in hotel and mixed use net profit of

• ver 40%

Steady improvement in restaurant net profit of 8% Net profit of retail trading and contract manufacturing business more than doubled in 1Q11 Lower effective tax rate as MINT did not have to pay taxes on subsidiaries with net losses, namely the two new hotels & Anantara Vacation Club

• 200
• 200

400 1Q10 2Q10 3Q10 4Q10 1Q11 Restaurant Hotel & Mixed Use Retail Trading 80 127 12.3% 11.3% 2.0% 2.9% 8.2% Net Margin Use 70%

7

Business Updates & Outlook

Anantara Vacation Club, Bophut, Koh Samui

FINANCIAL PERFORMANCE – HOTEL & MIXED USE

Hotel Updates

Revenue THB Million

1,866 1,010 1,222 1,853 2,883 975

Recognition of sale of real estates - St. Regis Residences was a major revenue contributor to the hotel and mixed-use business in 1Q11;

Key Highlights

REVENUE AND PROFIT FROM THE HOTEL & MIXED-USE BUSINESS EXHIBITED IMPRESSIVE GROWTH OF 50% YoY WITH NET MARGIN REMAINING STABLE. STRIPPING OUT PRE-OPENING EXPENSES OF TWO NEW HOTELS AND ANANTARA VACATION CLUB, NET MARGIN WOULD HAVE IMPROVED SIGNIFICANTLY

Although contribution is still not significant, Anantara Vacation Club started to recognize revenues from sale of points for right-to-use in time share resort after it was successfully launched in December 2010 8

EBITDA NPAT

EBITDA Margin Net Margin 1Q11 1Q10 2Q10 3Q10 4Q10 761 204 298 553 975 40.8% 20.2% 24.4% 29.8% 33.8% 389

• 49
• 24

216 577 20.9%

• 4.8%
• 2.0%

11.7% 20.0%

Anantara Kihavah, MINT’s first wholly-owned hotel outside of Thailand, was opened in Feb 2011, along with Anantara Rasananda, a managed hotel under Anantara brand;

• St. Regis Hotel Bangkok was opened in April 2011

Hotel business saw a gradual recovery as evidenced by improvement in organic occupancy The company made initial investment in Oaks Hotels & Resorts Limited (OAK ASX) in Australia in March 2011 successfully launched in December 2010 Share of profit from the three Maldives hotels (Anantara Veli, Anantara Dhigu and Naladhu) almost doubled in 1Q11, compared to 1Q10

RESIDENTIAL PROPERTY DEVELOPMENT

Hotel Outlook

SALES OF ST. REGIS RESIDENTIAL UNITS WERE ONE OF THE MAJOR REVENUE CONTRIBUTORS FOR THE HOTEL & MIXED USE BUSINESS IN

• 1Q11. BOTH ST. REGIS RESIDENCES AND THE ESTATES SAMUI STILL HAVE INVENTORIES AVAILABLE FOR SALE FOR THE NEXT FEW YEARS

Sold 50% Inventory 50% Sold 32% Inventory 68%

THE ESTATES SAMUI While sales have been recognized for the 7 units during 2006-2008, The Estates Samui has seven units in the inventory to be sold

• ver the next few years
• ST. REGIS RESIDENCES

Although 32% of the total sellable area of St. Regis Residences have been sold to date, a total of 22% have been booked as revenues in 4Q10 and

• 1Q11. The remaining 10% will be booked as the properties are transferred.

More revenue will be recognized as more inventories are sold

9 2006 2007 2008 2009 2010 1Q11 2011F 2011F 2011F 2012F 2013F Sold pending transfer Potential; deposit collected Inventory 2011F Inventory Inventory

ANANTARA VACATION CLUB

Hotel Outlook

LAUNCHED IN DEC 2010, ANANTARA VACATION CLUB STARTED TO CONTRIBUTE TO REVENUES OF THE HOTEL & MIXED USE BUSINESS IN

• 1Q11. ALTHOUGH THE AMOUNT IS STILL NOT SIGNIFICANT, IT HAS EXCEEDED MINT’S INTERNAL TARGET. MINT EXPECTS SELLING

MOMENTUM TO ACCELERATE OVER THE NEXT FEW YEARS

Inventories

Anantara Vacation Club is in the process of accumulating its own purpose-built properties: Samui The 20 units of exclusive suites and villas have been completed in Dec 2010 and are now available

Sales & Marketing

Sales and marketing offices have been launched in Samui and Phuket As at 1Q11, over 130 memberships have been sold, with Asians currently the biggest market

10 Singapore 15% Germany 8% Hong Kong 8% Malaysia 8% Japan 5% Australia 5% UK 5% Others 46%

AVC Members

are now available Phuket Two villas at Anantara Phuket Resort & Spa have been rented as immediate inventory 30 rais of land has been purchased to build 100 units of Anantara Vacation Club properties, to be available by end of 2012 Other destinations, which are being actively pursued, include Bangkok and Bali

Sample of AVC Brochure

REVENUE STREAM IS ENHANCED THROUGH CONSTANT RENEWAL OF EXISTING ASSETS AND PROPERTIES WITH MINIMAL INVESTMENT

By November 2011, Bangkok Marriott Resort and Spa will be rebranded to Anantara Bangkok Riverside Lease term has been extended from the remaining 8 years to 38 years

REJUVENATION OF EXISTING ASSETS

Anantara Bangkok Riverside

Hotel Outlook

11

The 413-room hotel will be upgraded through development of a convention center and shopping plaza, with additional guest rooms on upper floors Manorah Cruises will also be rebranded to Anantara Cruises in July 2011 The Anantara brand reinforces our commitment to leverage on our own intellectual properties

MINT’S HOTEL STATISTICS SAW GRADUAL IMPROVEMENT SINCE ITS ALL-TIME-LOW IN 2Q10. EXCLUDING NEW HOTELS OPENED, ORGANIC OCCUPANCY OF EXISTING HOTELS SAW AN IMPROVEMENT BOTH YoY AND QoQ TO 64% WHILE ADR IMPROVED QoQ WHILE REMAINED STABLE YoY AT THB 6,866 IN 1Q11

MINT’S HOTEL STATISTICS

Hotel Outlook

6,960 4,940 4,590 6,237 6,877 4,234 3,571 4,048 61% 41% 48% 57% 59% 40% 60% 80% 4,000 6,000 8,000

THB

61% 48% 57% 59% 64% 60% 4,000 5,000

Number

• f Rooms

+436 rooms Anantara Sathorn +44 rooms Anantara Rasananda +78 rooms Anantara Kihavah 12 2,018 2,211 3,571 41% 0% 20% 40% 2,000 4,000 1Q10 2Q10 3Q10 4Q10 1Q11 Revpar ADR % Occupancy 3,142 3,142 3,142 3,142 3,687 41% 0% 20% 40% 1,000 2,000 3,000 1Q10 2Q10 3Q10 4Q10 1Q11 Overall Occupancy Organic Occupancy Number of Hotel Rooms

* Note: No of rooms exclude Elewana, Serendib and Kani Lanka rooms

MINT CONTINUES TO SEE IMPROVEMENTS ACROSS ALL OF ITS FEEDER MARKETS, WITH A 10% YoY INCREASE IN OVERALL ROOMNIGHTS COMPARED TO INCREASE IN THAILAND’S TOURIST ARRIVALS OF 14% YoY

MINT’S FEEDER MARKETS

Hotel Outlook

20,000 40,000 60,000 80,000

1Q10 1Q11

Number of Room Nights China +53% Korea +62% 13% 11% 4% 2% 34% 13% 56%

• 22%

India +45% UAE +70%

MINT’s 1Q11 Feeder Markets

13 Thailand East Asia Europe The Americas South Asia Oceania Middle East Africa & Others Thailand 11% East Asia 20% Europe 41% The Americas 11% South Asia 3% Oceania 4% Middle East 8% Africa & Others 2%

MINT’s 1Q11 Feeder Markets

100,000 200,000 300,000 400,000 500,000 China Japan Russia Korea United Kingdom

1Q10 1Q11

Thailand’s Top 5 Feeder Markets

Number of Tourists 30% 5% 43% 18% 1%

EXPANSION INTO MARKETS INSIDE AND OUTSIDE THAILAND HAS BEEN ON TRACK & SHOULD CONTRIBUTE WELL TO REVENUE & PROFIT IN COMING QUARTERS

MINT’S HOTEL EXPANSION PLANS

Hotel Outlook

Investment Hotel

• Anantara Kihavah, Maldives - 78 Rooms (Opened)
• St. Regis Hotel, Bangkok - 227 Rooms (Opened)
• Anantara Pa-Ngan - 44 Rooms (Opened)
• Anantara Mui Ne, Vietnam - 89 Rooms
• Anantara Flamingo Villas, UAE - 30 Rooms
• Anantara Savannah Villas, UAE - 30 Rooms
• Anantara Xishuangbanna, China - 103 Rooms
• Anantara Uluwatu, Bali - 77 Rooms
• Anantara Blue City, Oman - 122 Rooms

Hotel Pipeline Management Contract

2011

• Masai Mara Camp, Kenya - 16 Rooms

14

2012

7 Hotels / 498 Rooms

• Anantara Sanya, China - 122 Rooms
• Anantara Chongqing, China - 150 Rooms
• Anantara E-Mei, Chengdu, China - 150 Rooms
• Anantara Chennai, India - 130 Rooms
• Anantara La Cambuse, Mauritius - 215 Rooms
• Anantara Wayanad, India - 95 Rooms
• Anantara Udaipur, India - 80 Rooms
• Anantara Al Baleed, Oman - 136 Rooms
• Anantara Al Akhdar, Oman – 134 Rooms

16 Hotels / 1,707 Rooms

2013 Total

• Amboseli Camp, Kenya - 16 Rooms
• Anantara Sri Lanka - 125 Rooms
• Serengeti Migration Camp Explorer, Tanzania -

20 Rooms

• Meru, Kenya - 16 Rooms

OAKS’ UNIQUE APARTMENT PORTFOLIO IS A VALUABLE ADDITION TO MINT’S EXPANDING RESORT AND HOTEL PORTFOLIO, PROVIDING MINT WITH THE OPPORTUNITY TO EXPAND ITS EXTENSIVE HOTEL FOOTPRINT TO THE AUSTRALIAN MARKET

ACQUISITION OF OAKS HOTELS & RESORTS

Hotel Update

Oaks is one of Australia’s largest hotel and resort operators. Founded in 1991 and listed on ASX in January 2006, Oaks has consolidated a market- leading position in the Australian Management Letting Rights (“MLR”) business; MLR are rights that allow Oaks to operate and rent residential condominium units participated in the rental pool as a hotel/service apartment. The company entered into an agreement with individual unit owners to operate and rent their units in exchange for a fixed percentage of top-line revenue and associated charges; MINT currently has a 54.3% relevant interest in Oaks;

15

The company currently manages 37 properties with an inventory of more than 4,000 rental units located throughout Australia, New Zealand and

• Dubai. Oaks property portfolio includes CBD apartments

properties, resorts overlooking coastal beaches and villas set amongst acres of tropical landscaping and lagoons

117 127 126 70 50 100 150 2008 2009 2010 1H11

Revenue

AUDmn 33 33 25 19 10 20 30 40 2008 2009 2010 1H11

EBITDA

AUDmn 14.7 9.8 3.9 6.0 5 10 15 20 2008 2009 2010 1H11

NPAT

AUDmn Source: Oak’s Annual Reports

REVENUE AND PROFIT FROM THE RESTAURANT BUSINESS EXHIBITED STRONG GROWTH OF OVER 7% FROM THE PRIOR YEAR WITH NET MARGIN REMAINING STABLE YoY AND QoQ

FINANCIAL PERFORMANCE - RESTAURANT

Revenue THB Million

2,765 2,471 2,519 2,704 2,963

Key Highlights

All brands recorded positive sales growth in 1Q11; The Pizza Company and Sizzler, which made up more than 40% of consolidated food group revenue, led the pact, having recorded double- digit same sales growth and total sales growth;

Restaurant Update

16

EBITDA NPAT

EBITDA Margin Net Margin 1Q11 1Q10 2Q10 3Q10 4Q10 471 390 356 449 467 17.0% 15.8% 14.1% 16.6% 15.8% 198 128 143 191 213 7.2% 5.2% 5.7% 7.1% 7.2%

Share of profit from The Coffee Club, in which MINT holds a 50% stake, increased significantly on the back of strong same store sales growth and continued outlet expansion through franchise model Apart from strong same store sales growth, the increase in the number of franchised outlets (by 43 outlets from end-1Q10 and by 8 outlets from end- 2010) also helped contributing to a 24.6% increase in franchise income YoY in 1Q11;

RESTAURANT SAME STORE SALES GROWTH MOMENTUM CONTINUED TO IMPROVE IN 1Q11 , OWING TO STRONG DOMESTIC DEMAND AND MINT’S SUCCESSFUL PROMOTIONAL EFFORTS. TOTAL STORE SALES GROWTH WAS ALSO PROPELED BY CONTINUED OUTLET EXPANSION

MINT’S RESTAURANT STATISTICS

6.8% 7.8% 9.5% 7.2% 10.6% 11.8% 11.9%

10% 15%

34% 66% 34% 66% 49% 51%

1,148 1,157 2,188

Restaurant Outlets Breakdown by Geography

International Thailand

Restaurant Update

17

Same Store Sales Growth Total Store Sales Growth

0.9% 1.4% 5.7%

0% 5% 1Q10 2Q10 3Q10 4Q10 1Q11

1,117 1,123 1,133 1,148

• No. of

Outlets

• 1,157

2010 1Q11 2015F

40% 60% 41% 59% 63% 37%

2010 1Q11 2015F 1,148 1,157 2,188

Restaurant Outlets Breakdown by Ownership

Franchised Owned

FOOD AND PAPER COSTS ROSE IN 1Q11 PRIMARILY AS A RESULT OF SEASONAL “BUY ONE GET ONE FREE” CAMPAIGN, LAUNCHED EVERY YEAR IN MARCH TO CELEBRATE THE ANNIVERSARY OF THE PIZZA COMPANY. STRIPPING THAT OUT, FOOD AND PAPER COSTS IN 1Q11 WOULD HAVE REMAINED STABLE AND WERE WELL CONTAINED

FOOD COSTS

35.9%

34.9% 35.2% 35.2%

35% 36%

% of Food & Paper Costs to Sales

Restaurant Update

18 34.1% 33.3% 33.0% 33.9% 34.5% 33.2% 33.2% 33.0%

34.0% 32% 33% 34% 35% 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Fixed Long- Term Contract Prices Menu-Mix Re-Engineering Supply Chain Management Maximization of FTA Benefit Pro-Active Inventory Management Strategy

Retail Trading Update

REVENUE OF RETAIL TRADING & CONTRACT MANUFACTURING INCREASED BY 21% WHILE PROFIT MORE THAN DOUBLED YoY, RESULTING IN INCREASE IN NET MARGIN BOTH YoY AND QoQ

FINANCIAL PERFORMANCE – RETAIL TRADING & CONTRACT MANUFACTURING

Revenue THB Million

696 574 672 739 840

Key Highlights

Contribution from GAP increased from A modification of pricing and distribution strategies for some fashion brands led to higher sales volume; 1Q11 also saw higher sales volume from end-of-season sales event in January compared with the same period the prior year

19

EBITDA NPAT

EBITDA Margin Net Margin 1Q11 1Q10 2Q10 3Q10 4Q10 38 23 36 55 64 5.5% 4.0% 5.4% 7.4% 7.6% 13 0.5 9 26 32 1.8% 0.1% 1.3% 3.5% 3.8%

Contribution from GAP increased from that generated from one outlet in March 2010 to that generated from three outlets in the entire quarter of 2011; Revenue from contract manufacturing rose significantly on the back of additional orders from existing customers; Additional manufacturing contracts have been signed with new customers, production is expected to begin in a few months

COMPARABLE SALES GROWTH AND TOTAL SALES GROWTH REMAINED STRONG. SALES PER SPACE CONTINUED TO IMPROVE DESPITE THE REDUCTION IN THE NUMBER OF OUTLETS AND SPACE AS A RESULT OF UPGRADES OF STORE CONCEPTS AND A MORE TARGETED PRODUCT OFFERING

MINT’S RETAIL TRADING STATISTICS

Retail Trading Update

14.5% 16.5% 17.0% 25.6% 27.8% 21.0%

20% 30%

24,590 18,378 20,171 27,544 30,262

20,000 30,000 40,000

20

Comparable Sales Growth Total Store Sales Growth

10.4% 7.3% 12.0% 0.0%

0% 10% 1Q10 2Q10 3Q10 4Q10 1Q11

277 267 267 258

• No. of

Outlets 233 18,378

10,000 1Q10 2Q10 3Q10 4Q10 1Q11

277 267 267 258

• No. of

Outlets 233

Fashion & Cosmetic Sales per Sqm.

GROWTH OF ALL BUSINESS UNITS ARE ON TRACK

5-Year Targets

22 hotels 676 restaurants 316 retail stores (14,524 Sqm)

2007

> 75 hotels > 0 residence > 200 timeshare units > 2,100 restaurants > 300 retail stores (21,600 Sqm) 2007 2015F

21

1Q11

2015F

35 hotels 67 residences 22 timeshare units 1,157 restaurants 233 retail stores (14,599 Sqm) 1Q11

LONG-TERM INVESTMENT RATIONALES

Investment Rationales

SOLID FOUNDATION FOR FURTHER GROWTH & HIGHER SHAREHOLDER VALUE

International Player New Initiatives & Acquisition Portfolio Balance

Building to be an International Player Adding Growth through New Initiatives and Disciplined Acquisition Balancing a Mix of Business Portfolio to Mitigate Risk & Volatility

22

MINT Intellectual Property Partnership w/ Global Players Financial Discipline

Enhancing Value through Increasingly Stronger Intellectual Property Leveraging Off Partnership with Reputable Global Players Maintaining Solid Balance Sheet & Cash Flows through Financial Discipline

APPENDIX

23

HOTEL PERFORMANCE

Hotel Occupancy Rate (%) ADR (Bt/night) RevPar (Bt/night) 1Q11 1Q10 1Q11 %Chg 1Q11 %Chg Marriott 79% 77% 4,243

• 7%

3,344

• 5%

Anantara 47% 48% 8,552

• 4%

4,027

• 6%

Four Seasons 59% 63% 9,678 3% 5,699

• 4%

Others 35% 34% 12,328 6% 4,350 12% Average 59% 61% 6,877

• 1%

4,048

• 4%
• Avg. Thailand

61% 66% 5,572

• 4%

3,388

• 12%

24

RESTAURANT PERFORMANCE

Brand SSS (%) TSS (%) 1Q11 1Q10 1Q11 1Q10 The Pizza Company 10.8

• 0.5

13.4 0.8 Swensen’s

• 2.5

6.9 2.6 7.0 Sizzler 10.5 5.1 12.5 18.7 Dairy Queen 5.2 4.0 8.9 10.8

25

Dairy Queen 5.2 4.0 8.9 10.8 Burger King 9.8 9.4 11.5 18.9 The Coffee Club 11.1 2.1 16.9 17.5 Thai Express

• 2.0
• 16.2

2.0

• 2.8

Average 7.8 0.9 11.9 9.5 Average Thailand 7.2 4.2 10.9 8.7

RESTAURANT OUTLETS

Brand

• No. of outlets
• No. of outlets

Equity Franchise Thailand International The Pizza Company 170 78 210 38 Swensen’s 113 133 232 14 Sizzler 44

• 38

6 Dairy Queen 244 3 247

• 26

Dairy Queen 244 3 247

• Burger King

27

• 27
• The Coffee Club

18 247 5 260 Thai Express 58 10

• 68

Others 12

• 12
• Total

686 471 771 386