Minor International 2Q09 Analyst Meeting 17 August 2009 Pratana - PowerPoint PPT Presentation

Minor International 2Q09 Analyst Meeting 17 August 2009 Pratana Mongkolkul, CFO

Today’s Agenda I. Key Issues & Business Performance II. 2Q09 Financial Results III. Key Strategic & Industry Update IV. Pipeline Expansion & Cashflow Outlook V. Q&A

I. Key Issues & Key Business Performance

New Developments in 2Q09 Corporate: Completed the business restructuring plan with an acquisition of 99.92% stake in Minor Corporation; Bt 0.08 final dividend payment. Food Business: Opened 20 new outlets including 9 owned and 11 franchised ( 9 in Thailand and 11 overseas); Closed down last two outlets of LeJazz brands in China; Total food outlets reach 1,084 Hospitality Business: Increased stake in Harbour View Hotel in Haiphong Vietnam to 30.39%; Managed 2 new spas in Tanzania and Turkey Retail Trading Business: Signed an agreement with Gap Inc. to open Gap store in Thailand 4

New Developments in 2Q09 Secured 7-year long Increased stake in Completed business Paid final Successfully term loans from 2 Harbour View restructuring plan & dividend of issued major banks in total Haiphong to 30.39% acquiring 99.92% Bt 0.08 per Bt 2.0 bn of Bt 4,000m from 19.98% stake of Minor Corp. share debenture April May June July Aug Managed 2 Total food Signed agreement Discontinued new spas in outlets with Gap Inc. to LeJazz brand Tanzania and increased by open Gap store in in China Turkey 20 to 1,084 Thailand 5

MINT’s Business Portfolio Snapshot Food 1,084 outlets Hotel & Spa 27 hotels and 32 spas Retail Trading 303 shops & distribution channel Mixed-Used 67 residential units and 3 shopping plaza Manufacturing Cheese, Ice cream Factory and FMCG Factory 6

MINT’s Revenue Breakdown by Business 2nd Quarter 2009: Bt 3,725 m 1st Half 2009: Bt 8,039 m Hotel & Spa Hotel & Spa 31% 28% Plaza & Entertainment Plaza & Entertainment 3% Food 3% Food Retail Trading 63% 1% Retail Trading 65% Share of Profit 3% 1% 7

MINT’s Core Business Performance Food Business Hotel & Spa Business 12.9% T otal System Sales Growth 44% O ccupancy Rate -3.4% S ame Store Sales Growth -2% A verage Room Rate 13% R evenue Growth -24% R evenue Growth 15% E BITDA Margin 27% E BITDA Margin 41% E BITDA Growth -37% E BITDA Growth 8

Food Business -- Key Performance SSS (%) TSS (%) SSS (%) TSS (%) Brand 2Q09 2Q08 2Q09 2Q08 6M09 6M08 6M09 6M08 The Pizza Company -6 -6 6 2 -3 1 10 8 Swensen’s -3 2 7 11 -4 -0 8 10 Sizzler -1 30 11 27 1 21 12 19 Dairy Queen 0 9 4 18 5 2 9 11 Burger King -14 -4 11 6 -10 2 7 16 The Coffee Club 2 4 18 18 2 4 18 21 Thai Express -17 6 52 62 -13 8 61 57 Average -3 3 13 16 -2 4 15 17 9

Hotel Business -- Key Performance Occupancy (%) ADR (Bt/night) Occupancy (%) ADR (Bt/night) Hotel 2Q09 2Q08 2Q09 2Q08 %Chg 6M09 6M08 6M09 6M08 %Chg Four Seasons 36% 53% 8,222 8,741 (5.9%) 42% 61% 9,082 9,605 (5.4%) Anantara 39% 59% 6,767 6,615 2.3% 42% 68% 8,608 8,011 7.5% Marriott 53% 73% 3,466 3,811 (9.1%) 61% 81% 4,192 4,651 (9.9%) Others 29% 45% 7,708 6,520 18.2% 31% 50% 9,443 8,101 16.6% Average-Thai 44% 64% 4,405 4,783 (7.9%) 51% 73% 5,220 5,705 (8.5%) Average 44% 64% 5,287 5,376 (1.7%) 50% 72% 6,328 6,386 (0.9%) 10

Hotel Business -- Key Performance RevPar (Bt/night) RevPar (Bt/night) Hotel 2Q09 2Q08 %Chg 6M09 6M08 %Chg Four Seasons 2,937 4,672 (34.0%) 3,771 5,832 (35.0%) Anantara 2,632 3,905 (33.0%) 3,623 5,466 (34.0%) Marriott 1,835 2,778 (37.0%) 2,575 3,781 (32.0%) Others 2,252 2,961 (24.0%) 2,948 4,046 (27.0%) Average-Thai 1,937 3,078 (37.0%) 2,660 4,160 (36.0%) Average 2,322 3,442 (33.0%) 3,156 4,608 (32.0%) 11

Retail Trading & Manufacturing Business Revenue Contribution MINT’s source of revenue is extended to retail trading & Others manufacturing business with 10% additional Bt 116m revenues for 17 Retail Trading day consolidation Manufacturing 51% 39% Total outlets as end of 2Q09 stood at 303 with the majority outlets belong to Esprit, Bossini, Charles & Keith and Timberland for fashion # Outlets 2Q09 Chg q-q Chg y-y Fashion 221 -1 9 brands and Red Earth, Laneige, Cosmetics 64 1 -2 and Bloom for cosmetics brands Others 18 -3 -7 Total Outlets 303 -3 0 12

II. 2Q09 Financial Results

2nd Quarter Performance (Bt Million) 2Q09 % 2Q08 % % y-y Change Food Services 2,424 65% 2,156 56% 12% Hotel & Spa Services 1,047 28% 1,386 36% (24%) Residential Property 6 0.2% 138 4% (96%) Plaza & Entertainment 128 3% 161 4% (20%) Retail Trading 116 3% - 0% n.a. Share of Profit 4 0.1% 7 0% (39%) Total Revenue 3,725 100% 3,848 100% (3%) Operating Expenses 1,220 33% 1,268 33% (4%) SG&A Expenses 1,717 46% 1,682 44% 2% EBITDA 788 21% 899 23% (12%) Depreciation & Amortization 387 10% 338 9% 15% EBIT 400 11% 561 15% (29%) Interest Expenses 90 2% 83 2% 9% Tax 65 2% 110 3% (41%) Minority 15 0.4% 17 0.4% (10%) Net Profit 230 6% 351 9% (34%) Excluded Revenue from Timeshare III Adj. Total Revenue 3,709 3,782 (2%) Adj. EBITDA 771 832 (7%) 14

2nd Quarter Performance EBITDA Contribution (Bt Million) 2Q09 % Food Services 2,424 65% Plaza & Entertainment 13% Hotel & Spa Services 1,047 28% Retail Trading Share of profit 3% Residential Property 6 0.2% 1% Plaza & Entertainment 128 3% Hotel & Spa 36% Retail Trading 116 3% Share of Profit 4 0.1% Total Revenue 3,725 100% Operating Expenses 1,220 33% Food SG&A Expenses 1,717 46% 47% EBITDA 788 21% Net Profit Contribution 2Q09 % Depreciation & Amortization 387 10% Food Services 121 53% EBIT 400 11% Hotel & Spa Services 25 11% Interest Expenses 90 2% Plaza & Entertainment 67 29% Tax 65 2% Retail Trading 17 7% Minority 15 0.4% Consolidated Net Profit 230 100% Net Profit 230 6% 15

1st Half Performance (Bt Million) 6M09 % 6M08 % % Growth Food Services 5,056 63% 4,120 50% 23% Hotel & Spa Services 2,518 31% 3,413 42% (26%) Residential Property 15 0.2% 288 4% (95%) Plaza & Entertainment 271 3% 311 4% (13%) Retail Trading 116 1% - 0% n.a. Share of Profit 64 1% 79 1% (19%) Total Revenue 8,039 100% 8,212 100% (2%) Operating Expenses 2,565 32% 2,656 32% (3%) SG&A Expenses 3,640 45% 3,286 40% 11% EBITDA 1,834 23% 2,269 28% (19%) Depreciation & Amortization 764 10% 657 8% 16% EBIT 1,070 13% 1,613 20% (34%) Interest Expenses 200 2% 170 2% 18% Tax 198 2% 304 4% (35%) Minority 41 0.5% 37 0.5% 9% Net Profit 631 8% 1,101 13% (43%) Excluded Revenue from Timeshare III Adj. Total Revenue 8,008 8,074 (1%) Adj. EBITDA 1,803 2,132 (15%) 16

1st Half Breakdown Performance EBITDA Contribution (Bt Million) 6M09 % Food Services 5,056 63% Plaza & Entertainment 11% Retail Trading Hotel & Spa Services 2,518 31% Share of Profit 1% 3% Residential Property 15 0.2% Plaza & Entertainment 271 3% Hotel & Spa Retail Trading 116 1% 44% Share of Profit 64 1% Total Revenue 8,039 100% Food Operating Expenses 2,565 32% 41% SG&A Expenses 3,640 45% EBITDA 1,834 23% Net Profit Contribution 6M09 % Depreciation & Amortization 764 10% Food Services 233 37% EBIT 1,070 13% Hotel & Spa Services 251 39% Interest Expenses 200 2% Plaza & Entertainment 130 21% Tax 198 2% Retail Trading 17 3% Minority 41 0.5% Consolidated Net Profit 631 100% Net Profit 631 8% 17

Quarterly Performance Net Profit Earning Per Share Net Profit Net Profit Margin 0.2500 800 17 0.23 14 0.1875 600 11 10 9 9 9 0.17 6 0.1250 400 0.12 0.12 0.11 0.11 0.10 0.0625 0.07 200 0 0 3Q07 3Q08 4Q07 4Q08 1Q08 1Q09 2Q08 2Q09 3Q07 3Q08 4Q07 4Q08 1Q08 1Q09 2Q08 2Q09 18

Efficiency Ratio Return On Asset Return on Equity Total Parent's Shareholders' Equity Adjusted ROE Total Assets Adjusted Return on Assets 15,000 30,000 9.2 9.0 20.0 8.1 18.5 11,250 22,500 16.4 6.6 6.0 13.4 12.6 7,500 15,000 3,750 7,500 0 0 2Q08 3Q08 4Q08 1Q09 2Q09 2Q08 3Q08 4Q08 1Q09 2Q09 Note: � Calculations based on revolving 4 quarters � Return on Assets = Profit Before Minorities / Total Assets 19 Return on Equity = Net Profit / Total Parents’ Shareholders’ Equity

Funding Management Interest Coverage Ratio Net Debt to Equity Ratio Interest Coverage Ratio Equity Interest Bearing Debt EBITDA Interest Expense Other Liabilities Net Debt-to-Equity Interest Coverage Ratio 1,500 30,000 0.9 1,125 22,500 0.7 0.6 0.6 0.6 12.6 12.3 750 15,000 11.4 9.9 9.5 375 7,500 0 0 2Q08 3Q08 4Q08 1Q09 2Q09 2Q08 3Q08 4Q08 1Q09 2Q09 Note: Calculations based on revolving 4 quarters; Note: Debt to Equity Ratio = Interest Bearing Debt / Total Equity 20 Interest Coverage Ratio = EBITDA / I

III. Key Strategic & Industry Update (Food & Hotel Business)

Key Business Strategy: Agile to Meet Dynamic Demand What MINT is Then Trend doing? Food Old-school dine-in Convenience-oriented Hotel Destination-based Activity-based Pure Residential Mix-used development Accommodations 22

Food Service Industry