Company Presentation – Nov 2018
FORWARD LOOKING STATEMENT Statements included or incorporated in these materials that use the words "believe", "anticipate", "estimate", "target", or "hope", or that otherwise relate to objectives, strategies, plans, intentions, beliefs or expectations or that have been constructed as statements as to future performance or events, are "forward-looking statements" within the meaning are not guarantees of future performance and involve risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated at the time the forward-looking statements are made. MINT undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. MINT makes no representation whatsoever about the opinion or statements of any analyst or other third party. MINT does not monitor or control the content of third party opinions or statements and does not endorse or accept any responsibility for the content or the use of any such opinion or statement. Disclaimer 2
Agenda 9M18 Performance Recap & NH Hotel Group Minor Hotels Minor Food Minor Lifestyle Corporate Information & Five-Year Strategy
9M18 Performance Recap NH Collection Barcelona Gran Hotel Calderón, Spain
SNAPSHOT OF MINT’S NINE MONTHS PERFORMANCE 9M18 revenue growth of 9% was driven by organic operations of Minor Hotels and Minor Lifestyle, together with dividend income from NH Hotel Group. However, net profit grew at a slower rate of 1% because of the margin pressure on AVC from the strengthening of the THB and lower operating leverage of restaurant business. REVENUE THB million Excl special gain Minor Lifestyle +9% y-y 7% 50,000 Minor Food 47,095 38% 46,974 45,000 43,066 40,000 35,000 Minor Hotels 30,000 55% 9M17 Minor Hotels Minor Food Minor Lifestyle 9M18 NET PROFIT Minor Lifestyle THB million Excl special gain 2% +1% y-y 5,000 Minor Food 3,944 3,804 4,000 33% 3,824 3,000 2,000 1,000 0 Minor Hotels 9M17 Minor Hotels Minor Food Minor Lifestyle 9M18 65% Non-recurring gain from fair value adjustment on the investment in Benihana of THB 121 million in 2Q18 * 9M18 financials include contributions from NH Hotel Group: Revenue (dividend income) of THB 443 million, NPAT (dividend net of related expenses, financial costs and tax) of THB -25 million 5 9M18 Performance Recap
INTERNATIONAL PRESENCE With solid diversification strategy, at the end of October 2018 (after the completion of the tender offer of NH Hotel Group), MINT’s footprint was in 64 countries across its hospitality and restaurant businesses. REVENUE CONTRIBUTION 100% 13% 75% 49% 50% 52% International Thailand 50% 87% 25% 51% 50% 48% 0% 2008 2017 9M18* 2022F * Excludes non-recurring gain from investment in Benihana, but includes NH Hotel Group Minor Hotels Minor Food Combination MINT’s Footprint 6
A TRANSFORMATIONAL ACQUISITION – NH HOTEL GROUP MINT completed the tender offer of NH Hotel Group on 31 Oct 2018. Total investment is EUR 2,327 million (approx. THB 87.9 billion) for 94.1% stake in NH Hotel Group. The acquisition has transformed MINT, both in terms of platform to become a global hospitality operator, as well as greater size financially with the contribution from NH Hotel Group. Bigger & Better Hospitality Platform Financially Accretive to MINT MINT & NH MINT & NH MINT Hotel Group Change THB million MINT Hotel Group Pro-forma 548 92,567 +97% Revenues 47,095 No of hotels 164 80,262 17,185 +78% EBITDA 9,663 No of keys 20,660 No of key own 8 4,437 +16% NPAT (Recurring) 3,823 5 hotel brands Key assumptions: • The 94.1% acquisition of NH Hotel Group was completed on 1 Jan 2017 64 No of countries 40 • No fair value adjustment • Borrowings from financial institutions and corporate bonds are calculated at 2.2% interest rate • P&L does not include interest expenses on the THB 15 billion perpetual Over 89,000 No of employees Over 66,000 bond at 5.85% interest rate, as the amount is reflected directly in retained earnings. (Note that post-swap interest rate is 3.83%.) NH Hotel Group 7
NH HOTEL GROUP ACQUISITION – IMMEDIATE PLANS Upon the completion of the tender offer, MINT has immediately started working on its medium-term plan. The key areas that have been identified are operational, accounting and balance sheet management issues. 4Q18 2019 2019 Goals • Support NHH management team to continue strong organic execution • Drive integration plans for incremental revenue increase and higher customer Value creation for Operations satisfaction both companies • Unlock value-accretive and synergistic benefits Expected NPAT • Consolidate NH Hotel • Consolidate full-year financials of NHH Accounting contribution in the Group in 4Q18 high teens • Ensure that MINT complies • Focus on bringing the D/E ratio down to the internal with its debt covenant of policy 1.75x D/E ratio Balance Sheet D/E ratio down to Management Fair value adjustment 1.3x by YE2019 Perpetual bond issuance Financial co-investors / Asset rotation strategy NH Hotel Group 8
FINANCING PLAN OF THE ACQUISITION OF NH HOTEL GROUP The amount of debt related to the acquisition of NH Hotel Group corresponds with the accumulation of NH Hotel Group shares over the period of June to October 2018. Upon the completion of the acquisition, the bridging loan will be termed out and/or repaid over the next three to four quarters. The exact timing will depend on the market condition. 94.1% + + 29.8% 16.6% 47.7% Shareholding • The bridge loan has a maximum term of 18 months THB 88 bn • MINT is exploring a combination of funding plans, as follows: ‒ Corporate bonds ‒ Syndicate loans THB 45 bn ‒ Perpetual bonds ‒ Possible repayment with THB 70 bn proceeds from sale to co- Bridge investors and/or asset Loan rotation • Bonds / loans in whatever THB 15 bn currency will ultimately be swapped into Euros to close any FX mismatch THB 3 bn • Taking advantage of the low Euro Euro Bond THB 28 bn interest rate, the swap will help THB 15 bn target blended funding cost to be Perpetual less than 3% Bond 2Q18 3Q18 4Q18 Funding @ acquisition NH Hotel Group 9
FINANCIAL PERFORMANCE OF NH HOTEL GROUP NH Hotel Group reported recurring EBITDA of EUR 185 million in 9M18. With strong business fundamentals and favorable macro environment, together with positive contributions from asset rotation strategy and efficiency measures, NH Hotel Group reiterates its EUR 260 million EBITDA guidance for 2018. KEY HIGHLIGHTS +3% y-y +3% y-y EUR million 1,156 1,190 • 9M18 revenue growth of 3% Revenues 405 ‒ RevPar up 2.0% (Occupancy + 0.4% & ADR +1.5%) 400 Revenue ‒ Strong performance of Benelux and Italy ‒ Relative RevPar outperformed comp sets in top cities with focus on quality (measured through TripAdvisor and Google +8% y-y +9% y-y Reviews) 185 170 • 9M18 recurring EBITDA growth of 9%, higher than revenue Recurring EBITDA Recurring 72 growth, resulting in margin improvement of almost 1% 67 EBITDA ‒ 41% EBITDA conversion rate 16.8% 17.6% 14.7% 15.6% EBITDA ‒ Effective cost control, both payroll and operating expenses Margin +51% y-y +88% y-y • 9M18 NPAT up significantly NPAT 51 Recurring ‒ Business improvement 28 27 NPAT 18 ‒ Lower financial costs, from both refinancing and full redemption of corporate bond and convertible bond 4.6% 6.8% 2.3% 4.3% Recurring ‒ Higher contribution of net capital gains from asset rotation NPAT Margin +110% y-y NM • Successful debt reduction 107 Leverage 35 ‒ Decline in net financial debt to EUR 208 million as of 30 Reported 24 28 NPAT September 2018 from EUR 655 million as of year-end 2017 Net ‒ Early redemption of convertible bond (EUR 250 million) in 4.2% 8.6% 2.1% 8.9% Margin June 2018 3Q17 3Q18 9M17 9M18 Note: (1) As per NH Hotel Group’s report, 3Q18 numbers exclude hyperinflation accounting effect (IAS 29), while 9M18 numbers include hyperinflation accounting effect (implemented since 1 Jan 2018) and (2) Recurring NPAT exclude capital gains and related taxes from asset rotation. Source: NH Hotel Group’s 9M18 Results Presentation & Sales and Results NH Hotel Group 10
Minor Hotels Souq Al Wakra Hotel Qatar by Tivoli
Recommend
More recommend
