Dusit it Thani Plc lc. . Analyst Meeting Strengthening the - - PowerPoint PPT Presentation

Dusit it Thani Plc lc. . Analyst Meeting

“Strengthening the Foundation”

11 April 2018

DTC at a gla lance

Distinguished hospitality group with Thai heritage

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Determined Vis ision Mis ission and Value

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Proud of our Thai heritage, uniquely delivering gracious hospitality to the world. We empower

• ur people to

exceed expectations. ALWAYS.

Care, Commit, Can do!

Mission Vision Value

DTC by numbers

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Focused on hospitality and hospitality education business

* Dusit Thani Laguna Phuket, dusitD2 Chiang Mai and the leasehold of Dusit Thani Hua Hin are under Dusit Thani Freehold and Leasehold Real Estate Investment Trust (DREIT) of which DTC holds a 30.02% stake. As of 31 March 2018

Years in hospitality business Countries 70 Properties in operation Owned hotels Management contracts & franchise Management contracts in pipeline 27* 9 18 64 8 Years in hospitality education business 24

Brand Portfolio

Franchise contracts with Dossen 40

Company structure

5 As of 31 March 2018

0.55% 99.99% Dusit Thani Properties Co., Ltd. Dusit Management Co., Ltd. 99.99% DMS Property Investment Private Limited 65.00% 88.01% Philippine Hoteliers, Inc. 84.05% Dusit Thai Properties Plc. 100% Philippine Hoteliers International Center for Hospitality Education, Inc. 40% Dusit Excellence Co., Ltd. 99.99% Le Cordon Bleu Dusit Co., Ltd. 49.99% Dusit Thani College Vimarnsuriya Co., Ltd. 65.00% Saladaeng Property Management Co., Ltd. Suanlum Property Co., Ltd. Pharam 4 Development Co., Ltd. 10.00% 14.00% 37.00% Devarana Spa Co., Ltd. Dusit Thani Properties REIT Co., Ltd. Dusit Thani Freehold and Leasehold Investment Trust (DREIT) 30.02% Favstay

• Pte. Ltd.

9.24% 99.99% 2.75% 100%

Dusit USA Management Inc.

99.99%

Dusit Worldwide Co.,Ltd.

100%

Dusit Overseas Co.,Ltd. Dusit Saudi LLC

51.00%

Dusit China Capital Co., Ltd.

99.99%

Dusit Fudu Hotel Management (Shanghai) Co., Ltd.

45.00%

Dusit Colours Co., Ltd.

49.00%

ASAI Holdings Co., Ltd.

99.70% 99.99%

Hotel Business Managed Hotel Owned Hotel Education Business Mixed-Use Project Other Business Dusit Thani Plc. (DTC)

99.7%

Food

Dusit Food Co., Ltd. NR Instant Produce Co., Ltd 25.977%

Business structure

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DTC

Hotel business

Owned Managed

Education business Mixed-use Project

Hotel Residence Office Building Retail

Food

Food OEM

Others

REIT Office Building favstay

As of 31 March 2018

Revenue contribution

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Hotel 82% Education 8% Others 10%

2017 Total Revenue

Remark: REIT data is included in hotel business Others = Realized income from deferred rental revenue, gain on sales of assets, interest income, dividend income, share of profit from investment by equity method, office rental income, and other incomes

THB 5,570mn Owned hotel revenue

Hotel key statistics

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• 3.5%
• 2.0%

Owned Hotel Statistic

Remark: * Including Dusit Princess Korat (The hotel was divested at the end of December 2017)

56% 44% 59% 41% 62% 38%

2017: 28 properties* in 8 countries

Stagnant performance …

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+19.6% +134.0%

* Remark: Including THB 325 mn gain on sales of assets (Dusit Princess Korat)

+2.7% *

… but with financial flexibility for future growth

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* Remark: Dividend per share in 2015 was revised retroactively to reflect the Company’s par value change from THB 10 to THB 1 since May 2015.

Net interest beating debt (Net IBD) = Total interest bearing debt - Cash & Cash equivalents including short term investment Maintaining BBB+ Company rating and stable outlook by TRIS Rating

+58.0% Average finance cost ~ 4% p.a.

DTC’s key challenges

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Concentrated Portfolio Aging Properties F&B Trend Industry Shift

Rely heavily

• n domestic

market Challenging for raising ADR & Need more renovation CAPEX Customers look for local experience Shift from full service to boutique/ lifestyle hotel and shared economy

DTC’s next chapter

A new roadmap for sustainable growth and resilient to future crises

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Strategic dir irection

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With strong background in the hotel management and education business over six decades, DTC is now entering into the new chapter with multi-year plan under “Balance, Diversify, and Expand” strategy… BALANCE

• 50:50 domestic: overseas revenue with balancing of

asset light vs capital investment

DIVERSIFY

• 10% contribution from new adjacent business

EXPAND

• Double number of rooms in operation

from 7,000 to 14,000 keys in 2021

Long term target Process People Properties Technology Financial Capability … by strengthening key 5 pillar foundations

Moving towards strategic dir irection

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BALANCE DIVERSIFY EXPAND

• Geographic
• Capital investment
• Resilient portfolio
• Financial driven
• Brand awareness

Capital investment focusing UK, Japan, Australia markets Objectives Non-hotel: Food, real estate, wellness Hotel portfolio (Invest/ Lease/ Managed) Key challenges

Strategic roadmap

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2018 Guidance

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• Core Revenue growth

+5% driven by RevPar

• Core EBITDA margin

~ 15%

• New managed properties

10+ (1,800+ rooms)

• CAPEX

THB 925 mn*

355** Hotel renovation (Maldives, Pattaya and Srinakarin) Renovation of Dusit Thani College Investment in IT system and software & Head office relocation

* Excluding new investment ** Excluding hotel renovation under DREIT

270 Mixed-use project (Demolition & Design development) 300 New owned property (ASAI brand)

Hotel busin iness

Growing global presence

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Hotel portfolio

18 Remark: As of 31 March 2018

Overseas Thailand Managed Owned

Bangkok (Silom) Pattya Hua Hin* Laguna Phuket* Chiang Mai Bangkok (Srinakarin) Chiang Mai* Dusit Thani Krabi Pathumwan Princess Royal Princess Larn Luang Dusit Island Chiang Rai dusitD2 Khao Yai Manila Maldives Constance Pasadena (USA) Nairobi (Kenya) Kenz Dubai (UAE) Fudu Binhu (Changzhou, China) Guam (USA) Dubai (UAE) Lakeview Cairo (Egypt) Abu Dhabi (UAE) Dongtai (Jiangsu, China) Fudu Qingfeng (Changzhou, China) Dusit Residence Dubai Marina (UAE) Conghua (Guangzhou, China) Panzhihua (Sichuan, China)

Hotel in in operation

19 Remark: As of 31 March 2018

27 properties with 7,154 rooms in 8 countries

2018 opening target

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8,967 rooms

5 2 1 1 1 1

China Vietnam Singapore Bhutan Philippines Bahrain

Plan to add 10+ properties and 1,800+ rooms in 4 new countries via asset-light model.

38 properties

2018F

12 countries

Remark: As of 31 March 2018

More expansion in Asia pacific and Middle East …

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3Q18: Thimphu, Bhutan (83 rooms) 4Q18: Vung Tau, Vietnam (100 rooms) 4Q18: Manila, Philippines (125 rooms)

dusitD2 The Fort, Manila, Philippines

4Q18: Singapore (208 rooms) 4Q18: Bahrain (174 rooms) 2Q18: Phu Quoc, Vietnam (108 rooms)

… as well as in China

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Heritage Villas Zhouzhuang, Jiangsu dusitD2 Society Hill, Tianjin Dusit Thani Shuangyue Bay Resort Huizhou Guangdong Dusit Thani Wetland Park Resort, Nanjing Jiangsu

3Q18: Tianjin, China (400 rooms) 3Q18: Jiangsu, China (55 rooms) 3Q18: Guangdong, China (350 rooms) 4Q18: Fujian, China (177 rooms)

Dusit Princess Fuzhou, Fujian

3Q18: Jiangsu, China (33 rooms)

* * * * * * * * *

Well established brand positioning in Asia, Middle East and Africa with balanced portfolio of city and resort properties.

Growing glo lobal presence

23 As of 31 March 2018

* = In operation

Coverage will increase from 8 countries to 20+ countries and from 7,154 rooms to 20,000+ rooms

New brand la launch

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A distinctive new brand designed to link curious, millennial-minded travelers with authentic local experiences in vibrant cities and resort destinations worldwide.

DTC’s Hotel spectrum

25 Remark: Invested in favstay as Venture Capital = Future plan

EXPERIENCE LIMITED SERVICE FULL SERVICE Bespoke/ Luxury Midscale Economy Budget Lifestyle/ Boutique Branded Residence Shared Economy Cruise/ Vacation Club

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Developing a unique hotel concept that is missing in the market

Leverage the strengths of Dusit International and resonate with a new target segment with high growth. Target the Millennials and those who share their mindset are thirsty for discovery, interaction and ways to make meaningful impact.

83% of business travelers are blending business and leisure, and seeking new types of experience

from their hotels (Source: Sabre) “Making over million trips per year, Millennials alone account for

• f international tourist

arrivals and this figure is expected to rise to nearly 300 million by 2020” (Source: World Tourism

Organization)

190 20%

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OUR INGREDIENTS

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Expansion strategy

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• 6 projects under development with focus
• n asset-light expansion
• Rooms count: 1,000 to date (April 2018)
• Target to open in vibrant cities and resort

destinations with emphasis on local neighbourhood

• Potential markets: SEA, Japan and Europe
• Plan to acquire 10 projects each year

Hospitality education business

Rebranding and expansion

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Thailand Singapore Philippines Australia

* *

Sri Lanka

DTC’s Hospitality education la landscape

33 As of March 2018

* = In operations

1 = Management contract 2 = LOI signed 3 = MOU signed

Academy Certify Body Research & Consult Thailand ASEAN Asia & Middle East

Recognition Level Service Offering

Hospitality School Tourism and Hospitality Institute

DTEC dusitD2 the Fort, Manila Dusit Thani College LCBD

Offer full range of hospitality program: Formal education (degree program), Professional class (short course/ executive course), and Management contract.

Omega Global2 SIM3 Dusit Thani College DTEC LCBD LPU1 dusitD2 the Fort, Manila

In In-progress education business repositioning

Set up “Dusit Thani Excellence Center” (DTEC) to develop the flagship academic curriculums.

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• Optimize Thai operations
• Launch e-Learning platform
• Synergize with hotel operations

Short-term plan

• Develop right partnerships
• Grow products and experiences
• Scale effectively

Long-term plan

Academic research and curriculum development center Food research and recipe development center Center for non-degree education and services

• Short-term programs
• Customized corporate

programs for cabin crews, hospitality services

• Consultancy services for SMEs

and culinary schools in ASEAN

Rebranding exercise has been done in 2017 to strengthen Dusit’s

brand positioning and external communication to connect Dusit’s hospitality education business to target markets (students and industry).

LCBD wil ill be relo located in in 4Q18

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Le Cordon Bleu – Dusit Culinary School (LCBD) Established in 2007 as a joint venture with the famed culinary school Le Cordon Bleu (49.99%) offering professional programs in French cuisine, Thai cuisine, Bakery and Wine Studies. LCBD will be relocated its school to Central World in 4Q18 due to DTC’s plan to demolish Dusit Thani Building early next year.

Mix ixed-use project

The future iconic landmark of Silom - Rama IV Road

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Mix ixed-use proje ject

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Grade A Office Building

• Offer a lot of convenient

facilities

• Perfectly serve all office

employee’s needs

• Fully equipped with

functions for intelligent building

Green Space within the Project

• Greenery garden at the

rooftop connected with every buildings

• Open space for any

activities

Dusit Thani Bangkok Hotel

• Iconic flagship hotel
• Luxurious 5-star hotel
• Digital technology and

modern style with international standard

World’s Class Retail Shopping Center

• Enjoy shopping Thai and

world’s class brands

• Center of prestige

restaurants

• Variety of entertainments

Premium Residence

• Luxurious condominium
• Delicate details
• Refresh and relax with

greenery garden rooftop and swimming pool

Photo credit: Aedas

Proje ject progress

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Currently under the stage of demolishing the office and commercial building on the extended land adjacent to Dusit Thani Building and the parking area of Dusit Thani Bangkok Hotel. 2018 is a year of developing design concept and attaining construction permit.

Hotel Residence Retail Office Sep 2022 Nov 2023 May 2023 Jun 2023

Target Opening

New in investment in in food business

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Food value chain

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Food Value Chain

Aggregator Logistic Production Farming/R&D/ Genetic Processing Distributor Wholesale/Retail Restaurant/Home Delivery/Catering Waste Recovery

Fir irst in investment in in non-hotel related business

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Invested 25.977% in NR Instant Produce Co., Ltd.

NR In Instant Produce (N (NRIP)

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Engages in the business of production and export of ready-made food which have been accepted by both domestic and international markets as a standard manufacturer of instant products.

• 0.8%

+32.0%

Source: NRIP Remark: 1 Jan-2 Oct 2017 audited figures and 2 Oct-31 Dec 2017 management report Source: NRIP and DTC

NRIP IP Products

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Recipe Mix: Red curry paste, green curry paste, beef flavor sauce Ready to Eat: Pad-Thai noodle, satay noodle, udon noodle, etc. Seasoning Mix Powder: Cooking sauce, fish sauce, soy sauce, etc. Dipping Sauce: Sweet chili sauce, plum sauce, dipping sauce, etc. Drink and Juice: Thai tea powder, green tea powder, etc. Owned Brands OEM Customers

Source: NRIP and DTC

In Investment rationale

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STANDARDIZE HOTEL F&B

and benefit from cost efficiency then create DIY and gift set opportunities

DIVERSIFY DUSIT BRAND

Promote Dusit brand in retail and diversify into food sector

RIDE THE FOOD TECH

Enjoy rapid growth from meatless protein and other products

LINK TO CULINARY

with Dusit education business, create food science & food tech education

• pportunity

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“Clear Path to Grow”

• Dusit Foods was set up to focus on any food related

investment going forward

• 26% profit from bottom-line consolidated into DTC
• Strong growth potential in NRIP’s existing business

Dusit Brand Expansion

• Standardized hotel F&B, support Dusit owned hotels

worldwide

• To develop a line of Dusit-branded, premium products

for local and international markets

• Enhance brand recognition worldwide

Existing Shareholders Dusit Foods NRIP 74.023% 25 25.97 977% 7%

Post Acquisition Structure

DTC 99 99.7% .7%

What’s in it for DTC?

DTC’s Investment value = THB 663 mn

Other business

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• Dusit Thani Freehold and Leasehold Real Estate Investment Trust
• favstay

DREIT: : IP IPO on 15 December 2017

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This successful transformation of DTCPF to DREIT will help Increasing DTC group’s financial capability which is a part of the company 5 foundations. Current assets under DREIT are Dusit Thani Laguna Phuket, dusitD2 Chiang Mai and the leasehold of Dusit Thani Hua Hin.

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• DTC invested 9.24% in favstay since April 2017 (USD 1 mn).
• favstay continues growing according to plan and target to

raise series B funding by 2019.

+46% +149%

Source: favstay and DTC

Fulfil DTC’s strategy positioning in shared economy

Thank you

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Dusit Thani Maldives

IR Contact: ir@dusit.com +66 (0) 2200 9999 Ext. 3676 www.dusit.com

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Disclaimer

The material contained in this document has been prepared by Dusit Thani Public Company Limited (“DTC”) and may contain forward looking statements which includes but not limited to statements regarding our intent, belief, current expectation in respect of DTC’s business, operation, market researches, results of operation and financial conditions, capital adequacy, specific provisions and risk management practices. While due care has been used in the preparation of forward looking statements, the assumptions of the information are subject to various risk and uncertainties which the actual results may vary in a materially positive or negative manner differently from the anticipation. And no assurance that the past performance is a reliable indication of future performance. Therefore, the information regarding forward looking statements shall not be considered as recommendation or advice to investors or potential investors in relation to hold, purchase, or sell securities. In this respect, DTC reserves the right not to be responsible and expressly disclaims all liabilities for, damages of any kind arising out of use, reference to, or reliance on any information contained herein.