Minor International 2Q10 Investor/ Analyst Presentation The Stock - - PowerPoint PPT Presentation

Minor International

2Q10 Investor/ Analyst Presentation The Stock Exchange of Thailand 19 August 2010

MINT’s long-term risk mitigation strategy

Financial Discipline Financial Discipline New Initiatives New Initiatives High Return Assets High Return Assets Diversification Diversification

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.

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Today’s Agenda

• Recent Developments, 1H10 & 2Q10 Financial Performance
• MINT’s Strategies to Remain a Growth Company
• 2010 - 2011 Outlook
• Pipeline Expansion & Capex
• Q&A
• Q&A

Appendix

• MINT’s hotel & restaurant portfolio

3

Recent Developments, 1H10 & 2Q10 Financial Performance

Recent Developments in 2Q10

Restaurant:

Food outlets reached 1,123; 686 are owned, while 437 are franchised First SW franchised outlets opened in Bangalore in India

Hotel & Residence

Elewana Afrika, MINT’s 50% owned safari resort operator, acquired Kilindi Resort in Zanzibar. Kilindi is a 15 pavilion

beach resort with average ADR of US$1,000 , and re-opened for operation on 25 May after completing a program of enhancements

MINT recently announced the 80% acquisition of the Sri Lanka company Cyprea Lanka Ltd. in August 2010,

comprising of the Kani Lanka Resort & Spa on 8.25 acres and an adjacent plot of 10.25-acre land primed for Anantara development in the future Retail Trading: Retail Trading:

Points of sales totaled 272 including 199 fashion outlets, 56 cosmetic outlets and 17 of others After the CTW burning incident, GAP opened a temporary 150 Sqm shop at Emporium until Sep 19 to alleviate the

impact of the CTW store closure and opened a second mega store at Siam Paragon on June 24. Plans are on track to open a Gap store at Paradise Park on August 20, 2010 and reopening the Gap store at CTW in September 2010 Finance:

Successfully launched a 5-year Bt 2.5 bn debenture with coupon rate of 3.98% in May

5

Solid Revenue Growth in 1H10

Breakdown Revenue Growth Revenue Contribution

2,000 4,000 6,000 8,000 10,000

(Bt m) 143 68

• 14

1,153 8,032 9,382

Increased 17% y-y 2,000 1H09 Food Hotel& Spa Plaza& Entertain Retail Trading 1H10

6

2Q10 Financial Performance Snap Shot

• Revenue was up 9% mainly from consolidation of Minor Corporation following the Jun-09 business

restructuring

• Net Profit was down 65% due to loss from Hotel & Spa business, MINT’s highest-margin business,
• Net Profit was down 65% due to loss from Hotel & Spa business, MINT’s highest-margin business,

which suffered from the political instability that caused tourist confidence to fall (Bt Million) 2Q10 2Q09 %Change

Total Revenue 4,055 3,718 9% EBITDA 617 788

• 22%

21% 15% 20% 25% EBITDA Net Profit

Profitability Margin

EBITDA 617 788

• 22%

Net Profit 80 230

• 65%

EPS (Bt) 0.0244 0.0718

• 66%

15% 2% 6% 0% 5% 10% 15%

2Q10 2Q09

7

Retail Trading Compensating for the Shortfall from Hotel Business in 2Q10

Breakdown Revenue Growth Revenue Contribution

1,000 2,000 3,000 4,000 5,000

(Bt m) 27

• 136
• 12

458 3,718 4,055

Increased 9% y-y

2Q09 Food Hotel& Spa Plaza& Entertain Retail Trading 2Q10

8

Remain Profitable from Restaurant and Mixed-Use Businesses

EBITDA (Bt m) 2Q10 2Q09 % chg Restaurant 387 393

• 2%

EBITDA Contribution

Restaurant 387 393

• 2%

Hotel & Spa 123 266

• 54%

Plaza & Entertainment 84 103

• 18%

Retail Trading 23 26

• 12%

EBITDA 617 788

• 22%

NPAT (Bt m) 2Q10 2Q09 % chg Restaurant 119 121

• 2%

Restaurant 119 121

• 2%

Hotel & Spa

• 93

25

• 472%

Plaza & Entertainment 53 67

• 21%

Retail Trading 1 17

• 94%

Net Profit 80 230

• 65%

9

2Q10 Consolidated Financial Performance

(Bt Million) 2Q09 % 2Q10 % %y-y Change Restaurant 2,424 65% 2,439 60% 1% Hotel & Spa 1,025 28% 891 22%

• 13%

Mixed-Use 6 0% 5 0%

• 7%

Plaza & Entertainment 143 4% 131 3%

• 9%

Retail Trading 116 3% 574 14% 396% Share of Profit - Restaurant 20 1% 32 1% 58% Share of Profit - Hotel & Spa (16) 0% (16) 0% 2% Total Revenue 3,718 100% 4,055 100% 9% Operating Expenses 1,213 33% 1,479 36% 22%

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SG&A Expenses 1,717 46% 1,960 48% 14% EBITDA 788 21% 617 15%

• 22%

DA 387 10% 388 10% 0% EBIT 400 11% 229 6%

• 43%

Net Profit 230 6% 80 2%

• 65%

EPS (BT) 0.0718 0.0244

• 66%

Weighted Number of Shares(m) 3,207 3,277 2%

Restaurant Business

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Restaurant Business Sentiment Update

20% Consumer confidence and dining SSS turned positive by the growth in domestic consumption and continued 5% 10% 15% Consumer confidence and dining behaviors hit by economic recession & domestic political chaos improvement from overseas business % 5% 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 TSS

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Restaurant Business in 2Q10

Brand SSS (%) TSS (%) 2Q10 2Q09 2Q10 2Q09

The Pizza Company 2.6

• 6.3

3.8 6.0 Swensen’s 3.4

• 3.4

3.1 7.3 Sizzler 3.3

• 0.8

14.1 11.4 Dairy Queen 5.6 0.4 10.3 4.3 Burger King 0.6

• 14.3

2.0 10.6 The Coffee Club 1.4 1.9 14.0 17.8 The Coffee Club 1.4 1.9 14.0 17.8 Thai Express

• 6.8
• 15.7
• 4.0

51.4 Average 1.3

• 3.3

7.0 13.1 Average Thailand 2.8

• 4.0

5.0 6.9

13

Restaurant - 2Q10 Performance Snap Shot

Same-Store-Sales Growth

Showed a continuous continuous improvement Effect from Political unrest

Total-System-Sales Growth

Closure of some outlets

14

Strong July Sales Growth Driven by Domestic Consumption and Turnaround the Overseas Performance

Thai Express reported the first positive same-store-sales growth due to the effort to revive non- performing stores and launch marketing campaign

SSS-2009 SSS-2010 TSS-2009 TSS-2010

• SSS-2009

SSS-2010

• 7M10 = 1.9%

7M10 = 4.0% 7M09 = -2.3% 7M10 = 7.3% 7M09 = 7.8% 7M10 = 8.6%

• 7M10 = 1.9%

7M09 = -2.1% 7M10 = 8.6% 7M09 = 14.0%

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Hotel & Residence Businesses

16

Hotel Business Sentiment Update

Tourist arrivals hit record high Profitability grew 50% y-y in 1Q10 Impact from Pattaya riot Remain profitable at 44% OCR and Bt 5,280 ADR Demonstration led to a temporary closure of FS Bangkok

17

Hotel Business in 2Q10

Hotel Occupancy Rate (%) ADR (Bt/night) RevPar (Bt/night) 2Q10 2Q09 2Q10 %Chg 2Q10 %Chg

Four Seasons -BKK 11% 39% 5,524

• 1%

581

• 73%

Four Seasons -Ex-BKK 25% 28% 17,825 1% 4,542

• 7%

Anantara 41% 38% 6,091

• 10%

2,484

• 3%

Marriott 53% 53% 3,155

• 9%

1,680

• 8%

Others 27% 29% 7,289

• 5%

1,934

• 14%

Average 41% 44% 5,002

• 5%

2,038

• 11%
• Avg. Thailand

41% 44% 3,895

• 12%

1,612

• 16%

Hotel Occupancy Rate (%) ADR (Bt/night) RevPar (Bt/night) 6M10 6M09 6M10 %Chg 6M10 %Chg

Four Seasons -BKK 44% 37% 5,627

• 2%

2,083

• 17%

Four Seasons -Ex-BKK 36% 43%

18,438

• 4%

7,943

13% Anantara 44% 42% 7,650

• 11%

3,394

• 6%

Marriott 65% 61% 3,973

• 5%

2,597 1% Others 30% 31% 9,674 2% 2,905

• 1%

Average 51% 50% 6,178

• 2%

3,140 0%

• Avg. Thailand

54% 51% 5,066

• 3%

2,722 3%

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Hotel - 2Q10 Performance Snap Shot

Average Occupancy of 41% 3% y-y Average ADR of Bt 5,002 5% y-y

3,155 6,091 11,777 7,289 53% 41% 15% 27% 53% 38% 36% 29%

Q210 Q209

• 10%

Others Others

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• 9%

Include all 4 Four Seasons hotels

Stable Feeder Markets Movement

• East Asia, especially Singapore, Hong Kong and Japan, was more sensitive to the political riots in

April – May.

• Middle East increase is mainly attributed to the 2 new hotels in Abu Dhabi

MINT’s Customers Breakdown 2Q10 2Q09

%Chg Thailand 14 16

• 2

East Asia 19 23

• 4

South Asia 4 3 1

• Middle East increase is mainly attributed to the 2 new hotels in Abu Dhabi
• Despite a decline in UK tourists due to the impact of the Greece debt crisis, MINT is compensated

by a significant increase from German and Russian guests

Feeder Market Breakdown

South Asia 4 3 1 Middle East 7 5 2 Europe 38 34 4 The Americas 10 13

• 3

Oceania 5 4 1 Africa & Others 2 2

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Tourist Arrivals to Thailand vs MINT

• Tourists from Russia and China reported significant y-y growth of 102% and 47%, respectively.

Likewise, tourists from Korea and Middle East grew over 20%, each now representing 3%-5% of total tourist arrivals to Thailand

300,000 400,000 500,000

6M10 6M09

total tourist arrivals to Thailand

• For MINT, a decline in UK guests was more than compensated by the sharp rise from the Germany,

UAE, Russia and Korea

MINT’s Top-Ten Feeder Markets Tourist Arrivals to Thailand

15,000 20,000

2Q10 2Q09

#room night

+53%

• 13%
• 19%

100,000 200,000 China Germany USA India Middle East

5,000 10,000 Germany Thailand U.S.A. UK Japan U.A.E. Australia Korea Hong … Russia China India

• 19%
• 9%
• 15%

+85% +40% +215%

• 43%

+68%

21

+21%

• 14%

Retail Trading & Contract Manufacturing

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Improved Performance of Retail Trading & Contract Manufacturing Business

• Despite the political demonstration and the curfew imposed during April – May, same store sales still

grew 7%. Contract manufacturing revenues declined 20% y-y since a major client underwent system migration and restructured their purchasing system. However, the shortfall is only temporary and the migration and restructured their purchasing system. However, the shortfall is only temporary and the

• rders are expected to resume in 3Q10.

2Q10 Revenue Breakdown Bt 577m ( 12% y-y) 2Q10 Operating Profits Bt m ( % y-y) Brand SSS (%) TSS (%) 2Q10 2Q09 2Q10 2Q09

Fashion 14%

• 18%

3%

• 17%

Cosmetic

• 16%
• 19%
• 9%
• 14%

Household

• 8%
• 25%
• 22%
• 20%

Retail Trading 7%

• 18%

0%

• 16%

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Retail Trading 7%

• 18%

0%

• 16%

Change in Sales 2Q10 2Q09

Contract Manufacturing

• 20%
• 7%

MINT’s Strategies to Remain a Growing Company

24

Achieving Target of 20% Earnings Growth Per Annum

3 2

25

1

Recent Acquisition of Cyprea Lanka

• Investment size of USD 11,614,500 by MINT, equivalent

to 80.1% shareholding while Serendib holds the remaining

• Cyprea Lanka assets include
• Kani Lanka Resort & Spa (Kani Lanka), a 4-star

resort with average occupancy of 90% and US$ 100 ADR

• A beautiful plot of adjacent land, which can be

developed into Anantara hotel

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developed into Anantara hotel

• With the recovery from the global financial crisis

accompanied by an end to the civil war in Sri Lanka, we anticipate the country to experience strong growth in the tourism business

Continued Penetration in High-Growth Regions

9.8% 2.9% Strong GDP

Middle East and North Africa Sub Sahara India

5.3% 12.7 % 4.7% 8.7% 8.4% 6.5%

China South East Asia

5.9% 6.8% Strong GDP Growth Expected in Focus Regions Healthy Population Growth

►27

Sub Sahara Africa

GDP Growth CAGR 2010-2015 Population Growth 2010-2015

Australia

3.2% 5.0%

Source: IMF World Economic Outlook 2010, World Bank, Health Nutrition Population Statistics

Complementary Business Portfolios

Opening spa as Launch of hotels in

Mandara Spa, Sheraton Sanya Resort Anantara Sanya, 2011 3 Anantara Spas at Kempinski Hotels, Tanzania Elewana Afrika, 2008

Opening spa as a spearhead Launch of hotels in the location

Tanzania Anantara Spa, The Emirates Palace, UAE 2 Managed Anantara Hotels in UAE, 2008

28

2010 - 2011 Outlook

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Resiliency of MINT’s Hotel Group

Healthy traffic to MINT’s

80%

Four Seasons Bangkok

Healthy traffic to MINT’s hotels in the East and South of Thailand

30

0% 40% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec OCR-2009 OCR-2010

Occupancy rebounded strongly in July, showing growth y-y

100

Improving Consumer Confidence Index

• Compared to 2009 when we experienced the airport closure and global economic

crisis, 2010 consumer confidence index has been less affected.

70 80 90 100 Rajprasong Riot = 75.0 Pattaya Riot = 72.1 Politics, Airport Closure London Bomb Bangkok Bomb, Coup Sub-prime Crisis Jul 10: 79.1 vs LY 73.4 50 60 Jan-05 Apr-05 Jul-05 Oct-05 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10

31

Source : CEBC, Thai Chamber of Commerce University Closure = 74.8

Supportive Factors from Domestic Consumption & Tourism Recovery

Real GDP Growth Consumer Confidence Index Tourist Arrivals to Thailand (m) Consumer Price Inflation

32

Source: 1. World Economic Situation and Prospect 2010, United Nation 2. Global Economic Prospects Summer 2010, World Bank, The Thai Chamber of Commerce Center for Economic and Business Forecasting Consumer Confidence Index

Downside Risk – Hotel Supply in Samui

New Hotel Supply Rooms Opening Date W Retreat Koh Samui 75 Nov 2010 Infinity Residences & Resort 65 Dec 2010 Conrad Koh Samui 65 1Q 2011 Vana Belle Samui (Starwood) 180 Aug 2011 MINT’s Samui hotels’ occupancies have been affected by political instability and the increase in premium supply MINT’s Samui hotels’ occupancies have been affected by political instability and the increase in premium supply

0% 50% 100% Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Four Seasons Anantara

33

Source: C9 Hotelworks

and the increase in premium supply and the increase in premium supply Pattaya Riot & H1N1 Virus Rajprasong Demonstration

Downside Risk – Hotel Supply in Phuket

Hotel Name Rooms Opening Date Pullman Phuket Arcadia 281 4Q 2011 Wyndam Resort 133 2Q 2010 Wyndam Resort 133 2Q 2010 Centara Grand Beach 262 3Q 2010 Taj Exotica 79 2013 Regent Phuket Cape Panwa 106 1Q 2011 Westin Siray Bay 261 3Q 2010 Jumeirah Private Island 72 4Q 2011

JW Marriott Phuket continues to show steady recovery, while Anantara Phuket, opened in October 2008, continues to establish its market position JW Marriott Phuket continues to show steady recovery, while Anantara Phuket, opened in October 2008, continues to establish its market position

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Source: C9 Hotelworks

0% 50% 100% Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 JW Marriott Anantara

Pattaya Riot & H1N1 Virus Rajprasong Demonstration while Anantara Phuket, opened in October 2008, continues to establish its market position while Anantara Phuket, opened in October 2008, continues to establish its market position

Progress on Projects Under Development

Anantara Kihavah, Maldives

• St. Regis

Hotel, Bangkok

• St. Regis

Residence, Bangkok

35

Maldives 82 over-water villas Opening: Dec 2010 Bangkok 220 rooms Opening: Jan 2011 Bangkok 53 units Transferring: Dec 2010

Pipeline Expansion & Planned Capex

36

Pipeline Expansion Breakdown

Unit Expansion Equity HMC/Franchise

Hotel 4 hotel/220 rooms TBC 2010 Hotel 4 hotel/220 rooms TBC Food 28 outlets 54 outlets 2011 Hotel 5 hotels/275 rooms 3 hotels/375 rooms Food

• 14 outlets

177 outlets 2012 Hotel 1 hotel/125 rooms 5 hotels/453 rooms Food 9 outlets 156 outlets 2013 Hotel TBC 3 hotels/388 rooms Food 21 outlets 179 outlets Food 21 outlets 179 outlets 2014 Hotel TBC TBC Food 46 outlets 188 outlets

Note: TBC = To be confirmed

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

Pipeline Expansion - Hotel

Year Opening Investment Hotel Management Contract

• Kilindi Zanzibar, Elewana (15 rooms) *
• Sri Lanka: Kani Lanka (105 rooms) **

2010

• Sri Lanka: Kani Lanka (105 rooms) **
• Anantara Kihavah, Maldives (80 rooms)
• Extension: Anantara Koh Samui (20 pool villas)
• St. Regis Residence, Bangkok (53 condo units)

2011

• St. Regis Hotel, Bangkok (227 rooms)
• 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)

2012

• Anantara Sri Lanka (125 rooms)
• Anantara Uluwatu, Bali (93 rooms)
• Anantara Chennai, India (130 rooms)
• Anantara La Cambuse, Maritius (170 rooms)
• Anantara Flamingo Villas, UAE (30 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 of the five-star Kilindi Zanzibar and re-open on 25 May 2010 ** MINT acquired 80% of Cyprea Lanka Ltd., consisting of Kani Lanka Resort & Spa and an adjacent land, on Aug 2010

38

Pipeline Expansion - Restaurant

Equity % of Openings Franchise % of Openings 2010 28 34% 54 66% Breakdown by Owning Interests RESTAURANT (# OUTLETS) 2010 28 34% 54 66% 2011

• 14
• 9%

177 109% 2012 9 5% 156 95% 2013 21 11% 179 90% 2014 46 20% 188 80% Total 90 11% 754 89% Thailand % of Openings Overseas % of Openings Breakdown by Destinations RESTAURANT (# OUTLETS)

39

2010 29 35% 53 65% 2011 81 50% 82 50% 2012 48 29% 117 71% 2013 58 29% 142 71% 2014 84 36% 150 64% Total 300 36% 544 64%

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

Investment Capex

• Capex includes all incurred expenses for both maintenance and new expansions
• Capex for new opportunities including project initiatives as well as planned acquisition in both

restaurant and hotel businesses shall be provided additionally

• !"

#$%&'$ #"$'$ ( '

40

Appendix: Hotel & Restaurant Portfolio

41

Hotel Properties

• 12 hotels
• 1,277 rooms
• 4 countries

7 hotels in Thailand 2 hotels in Maldives 1 hotel in Bali 2 hotels in Abu Dhabi

• 4 hotels
• 505 rooms
• Thailand

Bangkok Chiang Rai Chiang Mai Samui

42

Hotel Properties (Cont.)

• 4 hotels
• 1,195 rooms
• Thailand

Phuket Pattaya Hua Hin Bangkok 6 hotels 117 rooms Tanzania & Kenya 1 hotel 19 rooms Maldives 3 hotels 315 rooms Sri Lanka 1 hotels 122 rooms Vietnam Other Brands Other Brands

• 12 hotels
• 678 rooms
• 5 countries

1 hotel 105 rooms Sri Lanka

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MINT’s QSR Portfolio

As of 2Q10 Outlets %

243 230 250 73 43

1,123

Equity 686 61% Franchise 437 39% Total 1,123 100% As of 2Q10 Outlets %

24 22 238

Thailand 741 66% International 382 34% Total 1,123 100%

44

Thank You

• Please visit www.minornet.com

Investor Relations Office +66 (2) 365 7636-37