COMPANY PRESENTATION – Nov 2019
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. 2
AGENDA Highlights & Performance Recap Minor Hotels Minor Food Minor Lifestyle Corporate Information & Five-Year Strategy Ana Anantara Iko Mau auritius
HIGHLIGHTS & PERFORMANCE RECAP
Highlights & Outlook HIGHLIGHTS OUTLOOK Strong 4Q19 Outlook: • Recovery of Minor Hotels’ Thailand, Middle East & • 3Q19 CORE NPAT +39% / LFL NPAT +67% Africa portfolio • 9M19 CORE NPAT +9% / LFL NPAT +17% • NHH’s momentum continued • Sales activities of residential sales & recovery of Anantara Vacation Club • The acquisition of Bonchon will provide upside growth • Strategic asset rotation resulting in successful for Minor Food deleverage plan • The transaction is accretive from day one, with • Interest bearing debt declined by 10% to THB 112 potential to leverage on Minor Food’s platform & billion at the end of 3Q19 operations • D/E ratio declined to 1.35x at the end of 3Q19 • Minor Food’s transformation is underway 5
Investment in Bonchon Bonchon is an international restaurant brand which is reputable for its Korean-style fried chicken and other Korean-inspired dishes. MINT announced the investment in the existing outlets of Bonchon in Thailand, and is in discussion with the master franchise holder for the rights to expand the brand further in the country. BONCHON AT A GLANCE STORE LOCATION • Bonchon today has 44 stores, with another 2 to be opened by the end • The first Bonchon in Thailand opened its door in 2011 and, given its of 2019. popularity, has been expanding rapidly ever since. • With over 300 branches, Bonchon has established its footprint in 9 countries: Thailand, Philippines, Kuwait, Singapore, Bahrain, Vietnam, USA, Cambodia and Myanmar. Nakhon Ratchasima: 1 store Airport: 4 stores • Bonchon in each country caters specifically to the local market’s taste and lifestyle with unique menus and flexible store format. Greater Bangkok: 38 stores THE INVESTMENT IN BONCHON • MINT made the investment in Chicken Time, which operates over Pattaya: 1 store 40 outlets of equity-owned Bonchon stores in Thailand. • The investment amount is THB 2 billion for 100% in Chicken Time. • MINT is in the process of discussing with the holder of master franchise rights to acquire the rights to further expand Bonchon outlets in Thailand. *As of October 2019 6
Investment Rationales The investment in Bonchon is the opportunity for Minor Food to capture the fast-growing chicken market and the sizable Asian food market. The provincial Thailand is still an untapped market for the brand, while delivery market continues to offer growth potential, both of which Bonchon can leverage on Minor Food’s operating platform. SIGNIFICANT OUTLET OPPORTUNITY SIZABLE & HIGH GROWTH CONCEPT Market Size (THB billion) No of Outlets in Thailand 518 +229% 2008 2018 416 24 292 +196% +104% 150-200* +53% 10 9 7 109 6 56 62 4 4 44 3 TPC SW SZ DQ BK TCC Bonchon Chicken Burger Pizza Ice Cream Source: Euromonitor & company estimate Data as at end of 3Q19 * Bonchon’s estimated addressable outlets HIGH GROWTH POTENTIAL OF DELIVERY MARKET SUPERIOR PERFORMANCE & SCALABILITY Market Size (THB billion) • Bonchon’s best-in-class operational matrix: 10% CAGR 111 ‒ Payback period of less than one year for store openings 10% CAGR 84 75 67 ‒ Store EBITDA margin significantly higher than Minor Food’s 56 60 52 • Ability to leverage on Minor Food’s operating platform to accelerate growth trajectory, both in terms of physical outlet and delivery service 2013 2014 2015 2016 2017 2018 2021F Source: Euromonitor & company estimate 7
Comparables Both transaction comparables and trading comparables of F&B companies have averaged between 10 – 13x in the past. TRANSACTION COMPARABLES TRADING COMPARABLES - THAILAND EV/EBITDA (x) EV/EBITDA (x) 14.8 14.0 14.8 15 14.0 Average 15 12.3 Average 13.0x 11.0 12.7x 9.2 10 10 5 5 0 0 Coffee Bean & OldTown KFC Thailand MAP Boga MINT MK Zen Tea Leaf Berhad Thailand Adiperkasa TRADING COMPARABLES - SEA EV/EBITDA (x) 17.2 15 12.8 Average 10.3 10.6x 10 8.1 7.6 7.3 5 0 PT Jollibee Shakey's Pizza PT Sarimelati Kencana Max's Group Berjaya Food Jumbo Sarimelati Kencana 8
3Q19 Performance Recap In 3Q19, core revenue and NPAT increased by 86% and 39% y-y, respectively, primarily from the consolidation of NH Hotel Group (NHH). Driven by MINT’s timely strategic initiatives with its investment in NH Hotel Group and the sale and leaseback of three Tivoli hotels in Portugal, MINT was able to report robust performance despite the softness of MINT’s organic businesses, which were impacted by external challenges, including global uncertainties, continued appreciation of the Thai Baht and subdued domestic consumption demand. 3Q19 REVENUE CONTRIBUTION REVENUE +86% y-y THB million Minor Lifestyle +4,779 34,277 +14,592 29,497 4% +131 Minor Food 30,000 19% -150 20,000 15,889 -965 10,000 Minor Hotels 0 77% 3Q18 Minor Hotels NHH Minor Food Minor 3Q19 Core Non-core 3Q19 Revenue Pre-NHH Lifestyle Items Reported * Excludes non-core items NET PROFIT 3Q19 NET PROFIT CONTRIBUTION +39% y-y THB million +3,143 4,560 Minor Food 4,000 15% 3,000 2,000 +836 1,417 1,020 -20 -143 1,000 -275 0 Minor Hotels 3Q18 Minor Hotels NHH Minor Food Minor 3Q19 Core Non-core 3Q19 85% NPAT Pre-NHH Lifestyle Items Reported * Excludes non-core items 9 * Non-core items are detailed on page 47.
9M19 Performance Recap In 9M19, MINT’s core revenue almost doubled primarily from the consolidation of NHH. Core NPAT increased at a lower rate of 9% y-y, because of NHH’s first quarter low season, FX headwinds and MINT’s organic operations. 9M19 REVENUE CONTRIBUTION REVENUE +91% y-y THB million Minor Lifestyle +5,023 94,762 100,000 +43,365 +191 +358 89,739 4% Minor Food 80,000 20% 60,000 47,095 46,974 40,000 -121 -1,149 20,000 Minor Hotels 0 9M18 Non-core 9M18 Core Minor NHH Minor Minor 9M19 Core Non-core 9M19 76% Reported Items Hotels Food Lifestyle Items Reported Pre-NHH * Excludes non-core items NET PROFIT 9M19 NET PROFIT CONTRIBUTION THB million Minor Lifestyle +9% y-y +2,778 6,929 1% Minor Food 6,000 23% +1,129 4,151 3,944 3,824 4,000 -296 -44 -121 -461 2,000 0 9M18 Non-core 9M18 Core Minor NHH Minor Minor 9M19 Core Non-core 9M19 Minor Hotels Reported Items Hotels Food Lifestyle Items Reported 76% Pre-NHH * Excludes non-core items 10 * Non-core items are detailed on page 47.
FX Headwinds & Lease Payment In 3Q19, MINT’s financial performance was adversely impacted by the strengthening of the Thai Baht and the additional lease p ayment because of the sale-and-lease- back transaction of the 3 Tivoli assets. Excluding such impact, MINT’s like -for-like (LFL) NPAT would have increased by 67% in 3Q19 and 17% in 9M19. 3Q19 LFL NPAT +67% y-y +39% y-y THB million +832 2,000 1,707 1,417 1,500 -124 -21 1,020 -213 -77 1,000 500 0 3Q18 Minor Hotels Minor Food Minor 3Q19 @ FX Impact Leases 3Q19 NPAT Lifestyle Constant FX Core & excl Lease 9M19 LFL NPAT THB million +17% y-y +9% y-y +939 5,000 4,432 4,151 3,824 4,000 -287 -44 -77 -204 3,000 2,000 1,000 0 3Q18 NPAT Minor Hotels Minor Food Minor 3Q19 @ FX Impact Leases 3Q19 Lifestyle Constant FX Core & excl Lease 11 * Non-core items are detailed on page 47.
International Presence With solid diversification strategy, MINT’s footprint was in 63 countries at the end of 9M19 across its hospitality and restaurant businesses. Minor Hotels Minor Food Combination REVENUE CONTRIBUTION 100% 13% 75% International 61% 72% 75% Thailand 50% 87% 25% 39% 28% 25% 0% 2008 2018* 9M19* 2023F * Excludes non-core items 12
MINOR HOTELS Ana Anantara Ang Angkor
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