MINTs 3Q07 Investors Update 19 th November 2007 The Stock Exchange - - PowerPoint PPT Presentation

MINT’s 3Q07 Investors Update

19th November 2007 The Stock Exchange of Thailand

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Forward Looking Statements

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, including without limitation, risks and uncertainties associated with the following: the continued ability of Minor International Public Company Limited (“Mint”) to attract and retain personnel; identification, completion, terms and timing of future acquisitions and dispositions; the availability and terms of capital for acquisitions and for renovations; execution of hotel renovation and expansion programs; the ability to maintain existing management, franchise or representation agreements and to obtain new agreements on favorable terms; competition within the lodging and leisure industry; the cyclicality of the real estate business and the hotel and leisure business; foreign exchange fluctuations and exchange control restrictions; general real estate and national and international economic conditions; political and financial conditions and uncertainties in countries in which Mint owns or operates properties; changes in current laws, rules or regulations of governmental or other regulatory bodies; and other risks and uncertainties set forth in the annual, quarterly and current reports and proxy statements of Mint filed with the Securities and Exchange Commission (the "SEC"). 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

Key Developments in 3Q07 MINT’s Business Update

Food Services Hotel & Residential Properties

Financial Results Capex & Cashflow Outlook

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Key Developments in 3Q07

MINT’s expansion both organic & acquisition

QSR Business:

• Net outlet opening 11 owned and 11 franchised during 9 months 2007
• Acquired 50% holding in The Coffee Club – Australian brand currently
• perate >180 outlets

Hospitality & Residential Business:

• Official launch of The Estates Samui – the exclusive pool villas adjacent

to Four Seasons Samui

• Entered into new agreement with Marriott Vacation Club International to

become the business and development consultant

• Acquired 23 years lease of Kihavah Huravlhu island in Maldives to
• perate 2nd Anantara resort in Maldives

Finance:

• Debt refinancing by issuing Bt 3.9bn of 5 and 7 years debentures with

interest rate of 5.02% on average

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Financials Snapshot

55% 23% 16%

%Chg

240 691 2,872

3Q06

371 849 3,340

3Q07

881 2,317 8,988

9M06

19% 1,052 Net Profit 12% 2,593 EBITDA 13% 10,183 Sales Revenues

%Chg 9M07 (Bt m)

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MINT’s 3Q07 Revenue Breakdown

Contributions from core business remained solid

Share of profit 1% Other Business 7% Food 49% Hotel 43%

3Q07 : Bt3,340m 3Q06 : Bt2,872m

16% y-y

Hotel 36% Food 54% Other Business 8% Share of profit 2%

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Paul C. Kenny Chief Executive Officer, Minor Food Group

MINT’s QSR Business Portfolio SSS & TSS Performance Marketing Strategy China Business Update The Coffee Club

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+8 196 194 192 188 +22 653 649 644 631 Total

• 2

19 19 19 21

• 4

14 17 18 18 +2 18 18 17 16 +8 197 193 192 189

• 2

35 37 37 37 +12 174 171 169 162 YTD Chg 3Q07 2Q07 1Q07 2006 No of

• utlets

22 New Food Outlets in 9M07

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MINT’s QSR Brand Portfolio

92 600 Thailand 83 541 Equity 100 653 Total 100 653 Total 8 53 International 17 112 Franchise % Outlets % Outlets

195 195 174 174 35 35 197 197 18 18 16 16 19 19

Including TCC 180 outlets: Outlet % Equity 551 66 Franchise 282 34 Total 833 100 Including TCC 180 outlets: Outlet % Thailand 600 72 International 233 28 Total 833 100

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Middle East Middle East 14 outlets 14 outlets Thailand Thailand 600 outlets 600 outlets China China 32 outlets 32 outlets South East Asia South East Asia 7 outlets 7 outlets

New potential market -- India

Expansion in China to 200 outlets by 2010

MINT’s QSR Diversified Locations

Preserving leading position in Thailand and expanding overseas

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MINT’s China Food Expansion

Owned equity and franchise development plan

Beijing Cluster 2004-2007 Shanghai Cluster 2007-2009 Chengdu and Guangzhou Cluster 2008-2010 TPC Franchise Beijing Equity Sizzler Franchise

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21.6% 65.3% 35.4% 15.9% 33.2% 32.5% 11.1% 3Q06 7.6% (7.7%) 1.2% 8.2% 17.6% 18.9% (1.0%) 3Q06 TSS (%) (17.8%) (11.3%) Average Brand 3Q07 3Q07 4.7% (5.1%) 28.0% 4.5% (4.0%) (9.6%) (11.6%) (14.2%) 3.0% (7.5%) 12.8% 1.5% SSS (%)

MINT’s 3Q07 QSR Performance

Impacted by domestic low consumer confidence

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23.8% 45.3% 30.6% 8.2% 22.7% 32.6% 22.3% 9M06 9.1% (6.1%) 6.9% 0.9% 7.3% 15.7% 9.7% 9M06 TSS (%) (1.7%) (11.6%) Average Brand 9M07 9M07 10.1% (1.9%) 23.8% 3.8% 6.9% 1.1% (5.8%) (12.0%) 9.1% (3.1%) 17.3% 2.9% SSS (%)

MINT’s 9M07 QSR Performance

SSS showed slight negative, yet TSS still growing

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QSR Franchising Revenues

Domestic franchising improved strongly

28 30 33 34 8 6 8 8 5 35 10 20 30 40 50 3Q06 4Q06 1Q07 2Q07 3Q07 (Bt m)

Local Franchising Fee International Franchising Fee

8% y-y growth

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MINT’s QSR Outlook in 2007

Expecting a flat same-store-sale growth this year

• (3-5%)

3-5% 5-6% (5-8%)

• 3-5%

2007F 9.0 (6.0) 4.8 6.8 8.1 14.5 8.2 2006 Same-Store-Sale Growth

Brand re-positioning

Average Brand

Industry negative SSS growth Strong customers loyalty Effective marketing strategy High price point brand Softened from LY strong base Strong delivery channel

Key Issues

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MINT’s New Food Concept

Acquired 50% holding in Australian leading coffee

• Founded in 1989, Coffee Club is

Australia’s #1 coffee brand (by revenues ) with 180 outlets

• It owns the Coffee Club brand which

has been registered in 12 countries and operate under asset light franchise business model of 170

• utlets
• Healthy balance sheet with

consistent outlet expansion of 25

• utlets per annum
• MINT’s 50% holding enable a right
• f first refusal for the master

franchise to any market worldwide

50% of estimated >A$ 3.5m starting 2008 Financial implication >20% IRR Investment Return A$ 23m + Investment size

Detail Transaction

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The Coffee Club

Strategic benefits to MINT

Size

• Instantly increase outlets by 180
• Asset-light model with 90% franchised outlets

Brand Equity Value

• #1 coffee shop in Australia on revenue
• Registered trademark >12 countries
• Increased MINT’s international exposure

Potential Expansion

• Outlets to grow with The

Coffee Club of 20-30 outlets per annum

• Eligibility for MINT to

expand in Thailand and international together with its existing QSR

Financial Implication

• Immediate earnings growth

to MINT

• Investment IRR yields no

less than 20%

• Strong earnings upside with

new expansion

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MINT’s QSR Business Looking Forward

Thailand

Overall economy &

Political movement

International Business

Global supply chain Business (brand) model

China

SZ and Le Jazz

performance

Thailand

SZ Recovery OEM contract for external

customers/ Increase Factory Productivity

International Business

SW New Business Model Merger & Acquisition

China

Successful TPC delivery Franchised outlet

expansion

Key Issues Opportunity

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Pratana Manomaiphiboon

Chief Financial Officer, Minor International PLC

• Hotel & Residential Properties
• MINT’s Financial Results
• Year-end Anticipations
• Capex & Cashflow Outlook

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The Estates Samui

Official launch of luxury villa in Samui

• Exclusive and private

collection of 14 villas

• Located in a secluded cove

above a private beach, adjacent to Four Seasons Samui Resort

• 2-5 bedroom villas with

private infinity pool with large sundeck

• Average price US$ 3.5m per

unit with target selling 3-4 villas p.a.

• Freehold and leasehold

structures depend on the purchaser’s eligibility

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MINT’s 2nd Anantara in Maldives

Acquired 23 years lease for new island in Maldives

• After the successful launch
• f three hotels (Bodu Huraa,

Anantara, and Naladhu) in South Male Atoll, MINT plan to open a second Anantara in Baa Atoll

• The newest location is under

23 years lease contract with Maldives Tourism Development Corporation

• Location is amongst the up-

market international resorts

• 50-80 Pool Villa Anantara

Resort planned to open by mid-2009

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40 50 60 70 80 Jan Mar May Jul Sep Nov (%) 2005 2006 2007

Source: Tourism Authority of Thailand

600 700 800 900 1,000 1,100 1,200 1,300 1,400 1,500 1,600 Jan Mar May Jul Sep Nov

2005 2006 2007

Number of International Tourist

(‘000 persons)

Occupancy Rate

3% y-y growth in 9mth 9mth cumulative

• ccupancy at 60.4%

decreased 2.5% from LY

Thai Tourism Overall Sentiments

MINT’s hotels outperformed overall country tourism

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MINT’s 3Q07 Hotel Performance

Overall revpar grew at 20%

202% 3,046 67%

3Q06

10% 4,207 53%

3Q07 Other Brands

3% 3,857 70%

3Q06

8% 3,224 82%

3Q06

20% 4,116 62%

3Q06

• 21%

6,901 47%

3Q06 3Q07 3Q07 3Q07 3Q07

1% 3,416 79% 20% 28% 50% Rev Par (%Chg) 4,663 5,223 7,989 ADR (Bt) 70% 63% 61% Occupancy (%)

Average

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MINT’s 9M07 Hotel Performance

Anantara hotels showed the strongest growth

188% 3,277 60% 9M06 28% 3,998 62% 9M07

Other Brands

10% 4,362 71% 9M06 9% 3,709 82% 9M06 19% 4,540 63% 9M06 1% 7,263 54% 9M06 9M07 9M07 9M07 9M07 6% 3,993 81% 19% 42% 25% Rev Par (%Chg) 5,171 6,180 8,339 ADR (Bt) 72% 66% 59% Occupancy (%)

Average

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MINT’s Hotel Outlook in 2007

A superior RevPar growth

10% 9% 29%

• 3%

2006

RevPar (%y-y)

Brand Full renovation completed in 2006 10-15% Strong tourism recovery in Phuket 10-12% 15-18%% 30-35% 2007F

RevPar (%y-y)

Key Issue Increasing presence in premium destinations ie Maldives Strong growth on maturing

• peration of new hotel properties

Average

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Retail Properties & Entertainment

MINT’s other businesses continued its momentum

104 104 109 122 106 24 23 28 25 26 30 60 90 120 150 3Q06 4Q06 1Q07 2Q07 3Q07 (Bt m)

Retail Property Entertainment

4% y-y growth

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3Q07 Consolidated Performance

Strong top and bottom line growth

19% 35% 1,017 36% 1,207

• Hotel Operations

957% 1% 23 7% 243

• Management Services

3% 8% 220 7% 226 Other Business 8% 2% 2% 12% 12% 24% 42% 34% 100% 2% 36% 54%

%

26% 64 2% 81 Interest Expenses 48% 47 2% 69 Tax & Minority 20% 1,196 43% 1,437 SG&A Expenses 23% 691 25% 849 EBITDA

• 3%

340 10% 328 Depreciation & Amortization 48% 351 16% 521 EBIT 39% 1,040 43% 1,450 Hotel Services 4% 1,561 49% 1,626 Food Services

• 26%

51 1% 38 Share of Profit 11% 32% 100%

%

371 1,054 3,340

3Q07

55% 240 Net Profit 7% 986 Operating Expenses 16% 2,872 Total Revenue

% Growth 3Q06 (Bt Million)

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3Q07 Breakdown Performance

Net profit margin improved to 11%

1% 38 Share of Profit 11% 371 Net Profit 2% 69 Tax & Minority 2% 81 Interest Expenses 16% 521 EBIT 10% 328 Depreciation & Amortization 25% 849 EBITDA 43% 1,437 SG&A Expenses 32% 1,054 Operating Expenses 100% 3,340 Total Revenue 7% 226 Other Business 7% 243

• Management Services

36% 1,207

• Hotel Operations

43% 1,450 Hotel Services 49% 1,626 Food Services

% 3Q07 (Bt Million)

EBITDA Contribution 83% 307 Hospitality & Leisure

Net Profit Contribution

100% 17% 371 Consolidated Net Profit 64 Food Services Share of profit 1% Other Business 13% Food 25% Hotel 61%

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n.a. 0% – 1% 113 Residential Property 21% 8% 675 7% 705 Other Business 10% 3% 2% 15% 11% 26% 41% 33% 100% 1% 1% 37% 38% 53%

%

11% 196 2% 217 Interest Expenses 25% 275 3% 336 Tax & Minority 16% 3,720 42% 4,299 SG&A Expenses 12% 2,317 25% 2,593 EBITDA 2% 965 10% 988 Depreciation & Amortization 19% 1,352 16% 1,605 EBIT 15% 3,361 38% 3,879

• Hotel Operations

23% 3,395 41% 4,166 Hotel Services 6% 4,786 50% 5,088 Food Services

• 16%

132 1% 111 Share of profit 744% 34 3% 287

• Management Services

10% 32% 100%

%

1,052 3,292 10,183

9M07

19% 881 Net Profit 12% 2,951 Operating Expenses 13% 8,988 Total Revenue

% Growth 9M06 (Bt Million)

9M07 Consolidated Performance

On-track performance

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1% 113 Residential Property 1% 111 Share of profit 10% 1,052 Net Profit 3% 336 Tax & Minority 2% 217 Interest Expenses 16% 1,605 EBIT 10% 988 Depreciation & Amortization 25% 2,593 EBITDA 42% 4,299 SG&A Expenses 32% 3,292 Operating Expenses 100% 10,183 Total Revenue 8% 818 Other Business 3% 287

• Management Services

38% 3,879

• Hotel Operations

41% 4,166 Hotel Services 50% 5,088 Food Services

% 9M07 (Bt Million) EBITDA Contribution

76% 800 Hospitality & Leisure 3% 29 Residential Property

Net Profit Contribution

100% 21% 1,052 Consolidated Net Profit 223 Food Services Residential Property 2% Share of profit 1% Other Business 14% Food 27% Hotel 56%

9M07 Breakdown Performance

Hotel contributed 56% EBITDA

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Profitability Ratio

A stronger net profit margin

12% 13% 13% 12% 8% 7% 11% 8% 100 200 300 400 500 600 4Q05 4Q06 1Q06 1Q07 2Q06 2Q07 3Q06 3Q07 (Bt m) 0% 4% 8% 12% 16% Net Profit Net Profit Margin 0.15 0.08 0.08 0.08 0.15 0.15 0.14 0.12 0.00 0.02 0.04 0.06 0.08 0.10 0.12 0.14 0.16 0.18 4Q05 4Q06 1Q06 1Q07 2Q06 2Q07 3Q06 3Q07 (Bt/share)

Net Profit EPS

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Efficiency Ratio

Improved ROA & ROE

8.0% 7.7% 7.9% 8.0% 8.3% 10,000 12,000 14,000 16,000 18,000 20,000 22,000 3Q06 4Q06 1Q07 2Q07 3Q07 (Bt m) 4% 5% 6% 7% 8% 9% 10% Total Assets Adjusted Return on Assets 18.0% 17.2% 17.8% 18.2% 19.6% 4,000 5,000 6,000 7,000 8,000 9,000 3Q06 4Q06 1Q07 2Q07 3Q07 (Bt m) 10% 12% 14% 16% 18% 20% 22% Total Parent's Shareholders' Equity Adjusted Return on Equity

Note: Calculations based on revolving 4 quarters Return on Assets = Profit Before Minorities / Total Assets Return on Equity = Net Profit / Total Parents’ Shareholders’ Equity

Return on Assets Return on Equity

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0.99 0.88 0.76 0.87 0.85 5,000 10,000 15,000 20,000 3Q06 4Q06 1Q07 2Q07 3Q07 (Bt m) 0.0 0.2 0.4 0.6 0.8 1.0 1.2 (x) Equity Interest Bearing Debt Other Liabilities Interest Bearing Debt-to-Equity (RHS)

Balance Sheet

DE increased slightly from bond issuance

Assets 17,787 MB Assets 18,452 MB Assets 18,074 MB Assets 20,433 MB Assets 16,299 MB

Note:Debt to Equity Ratio = Interest Bearing Debt / Total Equity

Interest Bearing DE

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12.5 12.7 12.7 12.5 12.0 200 400 600 800 1,000 1,200 3Q06 4Q06 1Q07 2Q07 3Q07 (Bt m) 6 8 10 12 14 16 (x) EBITDA Interest Expense Interest Coverage Ratio (RHS)

Interest Coverage Ratio

A strong EBITDA coverage over 12x

Note: Calculations based on revolving 4 quarters Interest Coverage Ratio = EBITDA / I

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MINT’s current Debt Structure

Long-term debt paying 4.83%

MINT successfully issued

5 and 7 years debenture total Bt 3.7bn with key purpose for debt refinancing

Debt outstanding as end

• f Sep-07 stood at Bt

8.5bn with average interest rate of 4.83%

TRIS rating at “A” Interest bearing DE stood

at 0.99x

Assets 17,787 MB Assets 16,299 MB Assets 16,299 MB

Debt Structure as of Sep-07

LT-loan 18% LT-bond 70% Loan due within 1yr 12%

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MINT’s Hotel Pipeline Expansion

More pure-managed hotels to be opened

Owned, Owned & Managed Partial Owned & managed Pure Management

2011 onward 2010 2009 2008

Anantara Seminyak, Bali (1Q08)

Future Expansion

Thailand 3 Dubai 2 Other ME 2 Vietnam 4 Bali 3 Indian Ocean 4

Anantara Vietnam (1Q09) United Towers Dubai (1Q09)

• St. Regis

Hotel & Residence Bangkok (1Q10)

8-10 hotels

2 Anantara + 1 hotel Sri Lanka

4 hotels

Anantara Jumeirah Lake Dubai (1Q10) Palm Jumeirah Dubai (3Q08) Luxury Hotel Abu Dhabi (2Q08) Anantara Phuket (3Q08)

4 hotels

Anantara Abu Dhabi (1Q10) Anantara Kao Lak (3Q09) Anantara Kihavah Huravalhu Maldives (2Q09) 2-4 Luxury Hotels Dubai

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MINT’s Total Capex 2007-10

Key capex spending mainly for Thailand’s hotel & residence

(Bt Million)

1,000 2,000 3,000 4,000 5,000 2007 2008 2009 2010

Food Service Hospitality & Residential Property

Note: New opportunity projects under reviewed

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Cashflow Projection 2007-2010

MINT’s capex fully financed by internal cashflow

EBITDA CAPEX Tax & Finance Warrant Proceeds FCF (Bt Billion) (13.6) (3.9) 1.4 4.0 20.1

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Thank You