Minor International Minor International Analyst Presentation 3Q10 - - PowerPoint PPT Presentation

Minor International

Analyst Presentation 3Q10 Performance November 15, 2010

Minor International

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 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.

Today’s Agenda

• Recent Developments, 9M10 and 3Q10 Financial Performance
• 2011 - 2012 Outlook
• MINT’s 5-Year Plan
• Pipeline Expansion & CAPEX
• Q&A
• Q&A

Appendix

• MINT’s Business Portfolio
• Detailed 3Q10 and 9M10 Performance

Recent Developments in 3Q10

Restaurant:

Food outlets reached 1,133: 690 owned and 443 franchised Second SW franchised outlet opened in Delhi International Airport in India All restaurants at Central World shopping center reopened in late September

Hotel & Residence

Acquisition of Kani Lanka hotel in Sri Lanka with the first Anantara hotel in Sri Lanka to be developed on

the adjacent land

In the process of preparing the commencement of point-based “Anantara Vacation Club” with necessary

infrastructure already in place. Retail Trading:

Points of sales totaled 266, including 192 fashion outlets, 57 cosmetics outlets and 17 other retail outlets Third GAP mega-store opened at Paradise Park in August, while the existing GAP and other retail outlets

in Central World reopened in September

9M10 Financial Performance Snap Shot

• 9M10 total revenues increased by 13%, attributable to all three businesses:-
• Restaurant business as main growth driver throughout the year on the back of strong domestic economy
• Hotel business as a strong performer in the beginning of the year
• Retail trading contribution rose as consolidation took place in June 2009
• Net profit margin maintained due mainly to the improvement in margin of the restaurant business

(Bt Million) 9M10 9M09 %Change

Total Revenue 13,794 12,184 13% 20% 30%

EBITDA Net Profit

Profitability Margin

EBITDA 2,577 2,554 1% Net Profit 808 782 3% EPS (Bt) 0.2464 0.2376 4% 19% 21% 6% 6% 0% 10% 20% 9M10 9M09

Solid Revenue Growth in 9M10

Breakdown of Revenue Growth Revenue Contribution

• Revenue growth primarily from the consolidation of retail trading business
• Restaurant business remains the biggest revenue contributor

8,000 11,000 14,000

(Bt m)

Breakdown of Revenue Growth Revenue Contribution

286 99 1,225 12,184 13,794

Increased 13% y-y

• 5,000

9M09 Restaurant Hotel, Spa & Mixed Use Retail Trading 9M10

9M10 Profitability Improved by 3% y-y

EBITDA (Bt m) 9M10 9M09 % chg

EBITDA Contribution

• Profitability is driven by strong 1Q10 and consistent improvement of restaurant performance

Restaurant 1,217 1,157 5% Hotel , Spa & Mixed Use 1,263 1,336

• 5%

Retail Trading 97 62 56% EBITDA 2,577 2,555 1% NPAT (Bt m) 9M10 9M09 % chg

EBITDA Contribution

• Restaurant

454 353 29% Hotel, Spa & Mixed Use 331 395

• 16%

Retail Trading 23 34

• 32%

Net Profit 808 782 3%

3Q10 Financial Performance Snap Shot

• 3Q10 revenue growth was attributable to growth of all businesses, particularly restaurant
• Decline in net profit was primarily the result of net loss from hotel, spa & mixed use business,

partly due to pre-opening expenses of two new hotels. Historically, hotel business commanded the partly due to pre-opening expenses of two new hotels. Historically, hotel business commanded the highest margin (Bt Million) 3Q10 3Q09 %Change

Total Revenue 4,412 4,152 6% EBITDA 690 720

• 4%

16% 17% 10% 15% 20%

EBITDA Net Profit

Profitability Margin

EBITDA 690 720

• 4%

Net Profit 127 152

• 16%

EPS (Bt) 0.0388 0.0499

• 22%

3%

4% 0% 5% 10% 3Q10 3Q09

Breakdown of Revenue Growth Revenue Contribution

Revenue Growth From All Businesses in 3Q10

3,500 4,000 4,500

(Bt m) 144 46 71 4,152 4,413

Increased 6% y-y

• !

Hotel, Spa & Mixed Use 27% Retail Trading 15%

3,000 3Q09 Restaurant Hotel, Spa & Mixed Use Retail Trading 3Q10

3Q10 Profitability Driven by Restaurant Business

EBITDA (Bt m) 3Q10 3Q09 % chg Restaurant 356 376

• 5%

EBITDA Contribution

Restaurant 356 376

• 5%

Hotel, Spa & Mixed Use 298 308

• 3%

Retail Trading 36 36 0% EBITDA 690 720

• 4%

NPAT (Bt m) 3Q10 3Q09 % chg Restaurant 138 121 14%

• "
• Restaurant

138 121 14% Hotel, Spa & Mixed Use

• 20

14 N/A Retail Trading 9 17

• 47%

Net Profit 127 152

• 16%

Restaurant Business

Continued Improvement of Restaurant Business

• 3Q10 saw the highest same store sales growth since 2007, driven by strong domestic spending

and recovery of Thai Express in Singapore # # # !# # #" #

% 5% 10% 15% 20% SSS TSS

% growth y-y

• 10%
• 5%

% 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10

Restaurant - 3Q10 Performance Snap Shot

# #! !# !#

Same-Store-Sales Growth (y-y)

!# #

# $# !# "# !# $#

%& ' ( )* +, &&

• Showed strong

improvement from

• 6% last quarter

Compared to the high base last year

!#! $# !# # # # #

Total-System-Sales Growth (y-y)

Hotel & Residence Businesses

Hotel Business Sentiment Update

7,160 6,973

8,000 100% Occupancy ADR

% occupancy Baht

56% 44% 51% 58% 61% 41% 48% 7,160 5,284 4,749 6,133 6,973 5,002 4,633

2,000 3,000 4,000 5,000 6,000 7,000 8,000 25% 50% 75% 100%

• 1,000

2,000 0% 25% 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10

Hotel - 3Q10 Performance Snap Shot

Average Occupancy of 48% 3% y-y Average ADR of Bt 4,633 2% y-y

• Hotel business is expected to have reached its bottom and on its path to recovery

2,915 5,932 5,969 6,775

• 1%
• 4%
• 17%
• 5%

Change in ADR

56% 44% 46% 28% 60% 47% 45% 28%

3Q10 3Q09

Average Occupancy of 48% 3% y-y Average ADR of Bt 4,633 2% y-y

• 17%

Others Others

Stable Feeder Markets Movement

• Overall feeder market increased by 7% y-y, mainly driven by Thais, Middle East and Oceania.

This is attributable to aggressive promotions, Thai government’s tax incentives and the opening

• f Anantara Qasr Al Sarab since November 2009

MINT’s Customers Breakdown (%) 3Q10 3Q09

Chg Thailand 15 13 2 East Asia 29 30

• 1

South Asia 3 3 Middle East 7 6 1

Feeder Market Breakdown

Thailand, 14% South Asia, 4% Europe, 28% The Americas, 10% Africa & Others, 2%

Europe 28 33

• 5

The Americas 9 10

• 1

Oceania 6 4 2 Africa & Others 3 1 2

East Asia, 29% Middle East, 7% Oceania, 5% Europe, 28%

Tourist Arrivals to Thailand vs MINT

• MINT’s growing feeder markets are in line with Thailand’s highest growth feeder markets
• The increase of MINT’s tourists from Thailand, China, UAE and Australia more than offset the

decline in MINT’s feeder markets from developed countries

300,000 600,000 900,000 1,200,000 1,500,000 9M10 9M09

decline in MINT’s feeder markets from developed countries

MINT’s Top Feeder Markets Thailand’s Top Feeder Markets

• "

* * #room night

+23%

• 6% -10%
• 14%
• 11%-15%

+38% +63% +45%

• 1%

+43% +29% +28% +22% +55%

300,000 Malaysia China Japan Korea India UK

• .

##/# , , 012 3 &. #/#-# /

• ,

4

+43% +29%

Retail Trading & Contract Manufacturing

Improved Performance of Retail Trading & Contract Manufacturing Business

• For retail business, despite on-going political and global economic uncertainties, same store

sales still grew 14%, driven by domestic consumption

• Contract manufacturing revenues declined 10% y-y since a major client underwent system
• Contract manufacturing revenues declined 10% y-y since a major client underwent system

migration and restructured their purchasing system. However, disruption was only temporary and the orders are expected to resume in 2011. 3Q10 Revenue Breakdown Bt 675m ( 12% y-y) 2Q10 Operating Profits Bt m ( % y-y)

• 5.
• Brand

SSS (%) TSS (%) 3Q10 3Q09 3Q10 3Q09

Fashion 16%

• 24%

32%

• 24%

Cosmetic 11%

• 15%

13%

• 22%

Household 5%

• 26%
• 1%
• 28%
• 67
• Household

5%

• 26%
• 1%
• 28%

Retail Trading 14%

• 23%

27%

• 24%

Change in Sales 3Q10 3Q09

Contract Manufacturing

• 10%
• 8%

2011 - 2012 Outlook

Impact from Flood

• Direct and indirect loss of revenues from flood can be estimated at 0.95MB per day, which

accounts for only 2% of MINT’s total daily revenues. However, the number of impacted days cannot be estimated at this stage. Hotel & Spa Restaurant Retail Trading Total

• No. of Impacted Business

3 14 8 25

• Est. Loss of Revenues/ Day

(MB) 0.55* 0.31 0.09 0.95 MINT’s Revenues/ Day** MINT’s Revenues/ Day** (MB) 47.37 % Impact to Revenues/ Day 2.00%

* Based on 1% loss in occupancy for hotels in Thailand ** Based on MINT’s 2009 Total Revenues

Favorable Outlook – 2011 Forecast

2010F 2011F GDP Growth 7.5% 3% - 5% Tourist Arrivals 14.8m 15.5m Private Consumption 2% - 4% 2.5% - 4.5% Private Consumption 2% - 4% 2.5% - 4.5% Consumer Confidence Index 81.5 in Sep vs 78.2 avg 9M10

Source: Ministry of Finance, Tourism Authority of Thailand and University of Chamber Commerce

Challenge for Restaurants?

• Despite occasional food inflation, percentage of food & paper costs to sales has consistently

declined during the past 3 years. The improvement is attributable to economies of scale, adjustment in product mix and efficient supply chain management 35.9% 34.1% 34.9% 35.2% 35.2% 33.3% 33.0% 33.9% 34.5% 33.2% 33.2%

% of Food & Paper Costs to Sales

Dairy Queen’s New Partnership

Thailand Still The Best Destination

• Despite political instability, Bangkok and

Chiang Mai are still ranked as World’s best cities by leading magazine, Travel & best cities by leading magazine, Travel & Leisure

• Thailand’s Samui Island and Phuket

Island in the South were ranked fourth and the fifth respectively among Best Islands in Asia.

Introducing Anantara Vacation Club

Marriott Vacation Club In 2002, MINT entered into a 50:50 joint venture with Marriott to develop Asia’s first and most successful timeshare projects, called Marriott Vacation Club and Mai Khao Beach Club in Phuket. The projects Anantara Vacation Club To leverage on the strength of the Anantara brand, MINT will introduce Anantara Vacation Club (points club) by the end of 2010, initially offering units in Samui, Phuket, Bali and Bangkok. achieved over Baht 6 billion in sales.

2011 - 2015 Ownership Term Location Club Resort Units Key Assumptions 10 – 30 years 10 destinations >200

2011 – 2012 Outlook

MINT’s NPAT 2011 - 2012

2010F Restaurant Hotel & Mixed-Use Retail Trading 2011F Restaurant Hotel & Mixed-Use Retail Trading 2012F

MINT’s 5-Year Plan

MINT’s Vision

Vision Vision

Develop a Profitable Portfolio Develop a Profitable Portfolio Expand Internationally through Expand Internationally through Continually Assess New Continually Assess New

To be A Leading International Hospitality and Lifestyle Operator by delivering branded products and services providing 100% SATISFACTION to all stakeholders To be A Leading International Hospitality and Lifestyle Operator by delivering branded products and services providing 100% SATISFACTION to all stakeholders

> > 20 20% Earnings Growth % Earnings Growth > > 20 20% Earnings Growth % Earnings Growth > > 40 40% International Contribution % International Contribution > > 40 40% International Contribution % International Contribution Develop a Profitable Portfolio with Sustainable Growth Develop a Profitable Portfolio with Sustainable Growth Expand Internationally through Strategic Investment and Acquisitions Expand Internationally through Strategic Investment and Acquisitions Continually Assess New Opportunities to Maximize Shareholder Value Continually Assess New Opportunities to Maximize Shareholder Value

Business Groups are Aligned to MINT’s Growth Targets

2007 22 hotels 676 restaurants 2015F > 75 hotels 676 restaurants 311 retail stores (14,277 Sqm)

• Today

(3Q10)

2015F

3Q10 > 75 hotels > 67 residences > 200 timeshare units > 2,100 restaurants > 300 retail stores (21,600 Sqm)

2015F

3Q10 32 hotels 14 residences 1,133 restaurants 266 retail stores (15,663 Sqm)

Clusters of Capacity in Four Regions

23 restaurants, 6 spas 24 hotels 19 spas 1,087 restaurants 266 points of sales 2 hotels 6 spas 23 restaurants

Middle East: One of the most expensive hotels built, managed under Anantara brand Middle East: One of the most expensive hotels built, managed under Anantara brand Africa: a collection of luxury lodges in harmony with Africa Africa: a collection of luxury lodges in harmony with Africa China: Substantial growth potential in hotel & restaurant China: Substantial growth potential in hotel & restaurant

23 restaurants, 6 spas 266 points of sales 6 hotels 4 spas

harmony with Africa harmony with Africa Asia & Oceania: Largest hotel & restaurant operator in the region Asia & Oceania: Largest hotel & restaurant operator in the region

Pipeline Expansion & Planned Capex

Rapid and Sustainable Growth of Core Businesses

Restaurant (No. of Outlets)

Franchised Investment

Hotel (No. of Rooms)

350 531 690 803 4 100 443 1,371

• 3Q10

2015F Managed Investment 2,055 2,473 2,991 3,438 664 2,353

• 3Q10

2015F

Managed Investment

Pipeline Expansion - Hotel

Year Opening Investment Hotel Management Contract

• Kilindi Zanzibar, Elewana (15 rooms) *

2010

• Kilindi Zanzibar, Elewana (15 rooms) *
• Sri Lanka: Kani Lanka (105 rooms) **
• Extension: Anantara Koh Samui (20 pool villas)

2011

• Anantara Kihavah, Maldives (80 rooms)
• St. Regis Hotel, Bangkok (227 rooms)
• St. Regis Residence, Bangkok (53 condo units)
• Masai Mara Camp (12 rooms)
• Amboseli Camp(12 rooms)
• Marula Manor (16 rooms)
• Serengeti Migration Camp Explorer (8 rooms)
• Anantara Blue City, Oman (122 rooms)
• Anantara Sanya, China (148 rooms)
• Anantara Xishuangbanna, China (105 rooms)
• Anantara Uluwatu, Bali (93 rooms)
• Anantara Chennai, India (130 rooms)

2012

• Anantara Sri Lanka (125 rooms)
• Anantara Chennai, India (130 rooms)
• Anantara La Cambuse, Maritius (170 rooms)
• Anantara Flamingo Villas, UAE (30 rooms)
• Anantara Savannah Villas, UAE (30 rooms)

2013

• Anantara Wayanad, India (95 rooms)
• Anantara Chongqing, China (130 rooms)
• Anantara Chengdu, China (163 rooms)

Total 10 hotels (620 rooms )/1 residence (53 condo units) 11 hotels/ 1,216 rooms

Note: * Elewana Africa, MINT’s subsidiary, acquired five-star Kilindi hotel in Zanzibar ** MINT acquired 80% of Cyprea Lanka Ltd., consisting of Kani Lanka Resort & Spa and an adjacent land, in Aug 2010

Pipeline Expansion - Restaurant

Equity % of Openings Franchise % of Openings 2010 2 6% 33 94% Breakdown by Owning Interests RESTAURANT (# OUTLETS) 2010 2 6% 33 94% 2011 12 9% 123 91% 2012

• 5
• 2%

231 102% 2013 21 11% 179 90% 2014 46 20% 188 80% 2015 45 19% 187 81% Total 121 11% 941 89% Thailand % of Openings Overseas % of Openings 2010 84 240%

• 49
• 140%

Breakdown by Destinations RESTAURANT (# OUTLETS)

• 2011

68 50% 67 50% 2012 66 29% 160 71% 2013 65 33% 135 68% 2014 89 38% 145 62% 2015 88 38% 144 62% Total 460 43% 602 57%

Note: = Some of DQ equity outlets will be converted to franchise outlets

Investment CAPEX

• Once Anantara Kihavah and St. Regis Hotel & Residence are completed, CAPEX budget for

existing projects will be lower to less than Bt 3 billion per year

# # # #

• 5.
• 8
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• "
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Thank You

• Please visit www.minornet.com

Investor Relations Office +66 (2) 365 7635-37

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Appendix

Business Portfolio

As of 3Q10 Outlets %

MINT’s QSR Portfolio

244 8 countries 236 6 countries 251 3 countries 72 6 countries 44 2 countries

1,133

Equity 690 61% Franchise 443 39% Total 1,133 100% As of 3Q10 Outlets %

• 24

Thailand 22 240 2 countries

Thailand 751 66% International 382 34% Total 1,133 100%

MINT’s Hotel Portfolio in 8 Countries

Thailand Maldives Tanzania & Kenya Sri Lanka Vietnam

15 hotels

• 7 Anantara
• 4 Four Seasons
• 1 JW Marriott
• 3 Marriott

3 hotels

• 2 Anantara
• 1 Naladhu

6 hotels under Elewana Group

Indonesia UAE

4 hotels

• 3 Serendib Leisure
• 1 Kani Lanka

1 Harbour View hotel

Indonesia UAE

1 Anantara hotel 2 Anantara hotels

Portfolio choice: ✴Sole distributor of leading brands in fashion, cosmetic,

MINT’sRetail Trading and Contact Manufacturing Portfolio

✴Sole distributor of leading brands in fashion, cosmetic, household and educational publications ✴Contract manufacturer of many fast moving consumer goods

Fashion Apparel Cosmetics Other Concepts

192 outlets 57 outlets 17 outlets 100 tons/year

Manufacturing

Detailed 3Q10 and 9M10 Detailed 3Q10 and 9M10 Performance

Restaurant Business in 3Q10

Brand SSS (%) TSS (%) 3Q10 3Q09 3Q10 3Q09

The Pizza Company 6.7

• 8.9

8.8 0.5 Swensen’s

• 1.9

3.4

• 0.5

8.8 Sizzler 9.8

• 3.3

18.0 10.9 Dairy Queen 8.9

• 9.7

14.6 1.6 Burger King 2.6

• 7.0

0.4 25.6 The Coffee Club 8.7 0.2 17.3 13.3

• The Coffee Club

8.7 0.2 17.3 13.3 Thai Express

• 0.9
• 19.0

1.5 12.2 Average 5.7

• 4.4

10.6 8.6 Average Thailand 5.4

• 4.5

8.2 10.0

Hotel Business in 3Q10

Hotel Occupancy Rate (%) ADR (Bt/night) RevPar (Bt/night) 3Q10 3Q09 3Q10 %Chg 3Q10 %Chg

Marriott

• "

$ " $!

• "

$ " $! Anantara

• "

$ " $ Four Seasons

• $

" $ Others "! "!

• $

!!" $ Average !

• $"

"" $!

• Avg. Thailand
• $

! $

Hotel Occupancy Rate (%) ADR (Bt/night) RevPar (Bt/night) 9M10 9M09 9M10 %Chg 9M10 %Chg

• Marriott

"

• $

"" $ Anantara

• $!

! $ Four Seasons

• !!
• !

$ Others "

• !
• "

$" Average

• $"

"! $"

• Avg. Thailand

"

• 4,621
• 3%

2,413 0%

3Q10 Consolidated Financial Performance

(Bt Million) 3Q10 % 3Q09 % %y-y Change

• Rev. from Restaurant

2,517 57% 2,373 57% 6%

• Rev. from Hotel & Spa

1,036 23% 1,013 24% 2%

• Rev. from Mixed-Use

5 0% 5 0% 3%

• Rev. from Plaza & Entertainment

129 3% 116 3% 11%

• Rev. from Retail Trading

672 15% 600 14% 12% Share of Profit - Restaurant 33 1% 33 1%

• 2%

Share of Profit - Hotel & Spa 21 0% 12 0% 79% Total Revenue 4,413 100% 4,152 100% 6% Operating Expenses 1,604 36% 1,516 37% 6% SG&A Expenses 2,118 48% 1,917 46% 11% EBITDA 690 16% 720 17%

• 4%

DA 388 9% 399 10%

• 3%

EBIT 303 7% 321 8%

• 6%

Net Profit 127 3% 152 4%

• 16%

EPS (BT) 0.0388 0.0499

• 22%

Weighted Number of Shares(m) 3,283 3,046 8%

9M10 Consolidated Financial Performance

(Bt Million) 9M10 % 9M09 % %y-y Change

• Rev. from Restaurant

7,693 56% 7,429 61% 4%

• Rev. from Hotel & Spa

3,604 26% 3,509 29% 3%

• Rev. from Mixed-Use

20 0% 20 0% 1%

• Rev. from Plaza & Entertainment

401 3% 402 3% 0%

• Rev. from Retail Trading

1,941 14% 716 6% 171% Share of Profit - Restaurant 93 1% 71 1% 30% Share of Profit - Hotel & Spa 42 0% 38 0% 11% Total Revenue 13,794 100% 12,184 100% 13% Operating Expenses 4,933 36% 4,074 33% 21% SG&A Expenses 6,284 46% 5,556 46% 13% EBITDA 2,577 19% 2,554 21% 1% DA 1,173 9% 1,164 10% 1% EBIT 1,404 10% 1,390 11% 1% Net Profit 808 6% 783 6% 3% EPS (BT) 0.2465 0.2376 4% Weighted Number of Shares(m) 3,277 3,293

• 1%