Q32019 Opportunity Day December 11, 2019 1 DISCLAIMER The - - PowerPoint PPT Presentation

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Q32019 Opportunity Day December 11, 2019 1 DISCLAIMER The - - PowerPoint PPT Presentation

Q32019 Opportunity Day December 11, 2019 1 DISCLAIMER The information contained in this material has been prepared by S Hotels and Resorts Public Company Limited ( SHR or S Hotels and Resorts ) solely for information purpose and


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Q3’2019 Opportunity Day

December 11, 2019

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The information contained in this material has been prepared by S Hotels and Resorts Public Company Limited (“SHR” or “S Hotels and Resorts”) solely for information purpose and does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for shares in S Hotels and Resorts . Some statements made in this material are forward‐looking statements. These statements typically contain words such as "expects" and "anticipates" and words of similar

  • import. Any statement in these materials that is not a statement of historical fact is a forward-looking statement that involves various risks and uncertainties. These include

statements with respect to our corporate plans, strategies, and beliefs. The statements are based on our management’s assumptions and beliefs in light of the information currently available to us. These assumptions involve risks and uncertainties which may cause the actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by such forward‐looking statements. None of the future projections, expectations, estimates or prospects in this presentation should be taken as forecasts or promises nor should they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates or prospects have been prepared are correct or exhaustive or, in the case of the assumptions, fully stated in the presentation. We assume no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements. Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of S Hotels and Resorts or any of its shareholders, directors, officers or employees or any of the Banks (and their shareholders, directors, officers or employees) or any other person as to the accuracy, completeness or fairness of the information

  • r opinions contained in this presentation. None of S Hotels and Resorts nor any of its shareholders, directors, officers or employees accepts any liability (in negligence or
  • therwise) whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith. Individual situations

and local practices and standards may vary, so viewers and others utilizing information contained within a presentation are free to adopt differing standards and approaches as they see fit. Products and names mentioned in materials or presentations are the property of their respective owners and the mention of them does not constitute an endorsement by S Hotels and Resorts . The information contained in this presentation is only current as of the date its date. In giving this presentation, neither S Hotels and Resorts nor its respective advisers and/or agents undertake any obligation to provide the recipient with access to any additional information or to update this presentation

  • r any additional information or to correct any inaccuracies in any such information which may become apparent. You must make your own assessment of the relevance,

accuracy and adequacy of the information contained in this presentation and must make such independent investigation as you may consider necessary or appropriate for such purpose. The presentation should not be construed as legal, tax, investment or other advice.

DISCLAIMER

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Welcome to the world of S Hotels & Resorts

The premier hotel investment and resort management company, creating unique travel experiences for our guests and value for our stakeholders

▪ SHR Overview ▪ Business update ▪ Q3’19 performance ▪ Projects under development Agenda

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Upscale 4% Luxury 2% Upper upscale 27% Upper midscale 67%

Asia-Pacific 50.3% Europe 39.6% Americas 7.0% Africa 2.5% Others 0.6%

Target customers 2016 2018

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Notes: (1) Overall portfolio includes all assets including UK assets. Breakdown by keys. (2) Core portfolio excludes UK assets, which are held through a 50% stake in our equal joint venture with FICO UK. Breakdown by customer nights.

Core assets(2)

Positioning 2014 2018

Overall portfolio(1)

2014 2015 2016 2017 2018 2019

Number of keys

227 2,889 274 878 4,647

◼ Singha Estate

acquired Santiburi Koh Samui Apr 2014

◼ Acquired Phi Phi

Island Village Beach Resort Nov 2014

◼ Acquired 2 Holiday Inn

hotels and 1 Mercure hotel through second JV with FICO UK Sep 2016

◼ Phi Phi Island Village

Beach Resort completed renovation of 45 bungalows (superior), 110 bungalows (standard) and 3 restaurants Nov 2016

◼ Commenced land reclamation,

shoreline protection, landscaping and construction

  • f Project Crossroads Phase

One (via Singha Estate) Jan 2017

◼ SHR acquired Project

Crossroads Phase One from Singha Estate Mar 2018

◼ Santiburi Koh Samui constructed

19 new grand reserve pool villas (new room category)

◼ Acquired 6 Outrigger hotels

May/Jun 2018

◼ Commencement of

  • perations for two

hotels in Maldives 3Q19

Geographical coverage

◼ SHR trading on SET

2019

376 3

◼ 6 grand deluxe pool

villas added to Santiburi Koh Samui Apr 2015

◼ Entered into equal JV

with FICO UK to acquire UK portfolio

  • f 26 hotels

Oct 2015

Proven track record to grow footprint

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SHR’s global hospitality portfolio

39

Total # of Resorts / Hotels

4,647

Total #

  • f Keys

5

Countries

7

Brands

Outrigger Hotels UK Hotels Total # of keys Total # of Hotels

Hard Rock Hotel Maldives

178

2,964 Outrigger Laguna Phuket Beach Resort Outrigger Koh Samui Beach Resort

255 52

Phi Phi Island Village Beach Resort

201

Note: Core portfolio excludes Holiday Inn and Mercure hotels in the UK which are held through a 50% stake in our equal joint venture with FICO UK. (1) Includes Self-Managed Hotels under franchise agreement(s).

Outrigger Konotta Maldives Resort

53

SAii Lagoon Maldives, Curio Collection by Hilton

198

Self-Managed Hotels(1)

Outrigger Fiji Beach Resort

253

Castaway Island, Fiji

65

Outrigger Mauritius Beach Resort

181 151

Santiburi Koh Samui

96

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Our hospitality management platform : “Affordable luxury lifestyle resort”

6 properties | 859 keys 2 properties | 297 keys 2 property | 376 keys (To be launched in 2020-2021)

Self-Managed 3rd Party Hotel Management Agreement Self-Managed with Franchise Agreement Hotel Management Platform

SHR is able to tap on both in-house, home-grown management platforms as well as access to strong brands via collaboration with reputable international operators

68% 3% 29%

9M’2019 Revenue

3rd Party Hotel Management Agreement Self-Managed with Franchise Agreement Self-Managed

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HAVE A NICE DAY Business update

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The Marina @ Crossroads SAii Lagoon Maldives, Curio Collection by Hilton Hard Rock Hotel Maldives Crossroads Phase Two

Destination highlights Hard Rock Hotel Maldives SAii Lagoon Maldives, Curio Collection by Hilton

▪ First integrated leisure and entertainment island in the Maldives ▪ First integrated project in the Maldives that

  • ffers wide variety of leisure components to

visitors ▪ First hotel under SHR’s new “SAii” brand used alongside the established Hilton brand name ▪ 198 upper upscale rooms (44 sqm to 240 sqm per room) ▪ First upper upscale hotel in the Maldives under the Hard Rock Brand ▪ 178 rooms (46 sqm to 445 sqm per room)

The Marina @ Crossroads

CROSSROADS Project

Crossroads : World-class integrated development and the first of its kind in the region

Crossroads Phase One Island III

▪ 1st integrated lifestyle destination in the Maldives ▪ Superb location : within 15 minutes by speed ferry from the Malé Velena International Airport ▪ The project comprises: ▪ SAii Lagoon Maldives, Curio Collection by Hilton ▪ Hard Rock Hotel Maldives ▪ Marina @ Crossroads ▪ High-end lifestyle resort under development on Island III ▪ 50-year lease expiring in February 2066, with option to extend for 49 years ▪ Right of purchase and right of first refusal to acquire Project Crossroads Phase Two from Boon Rawd Brewery Group (BRBG)

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Hotels at Crossroads project

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Dine Spa Shop

Shops at The Marina at Crossroads

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Project Crossroads Phase I

Island I&II Excellent feedback from customers; Strengthen our position in OTA channel Maldives forecasted visitor number for 2019 has been raised to 1.6m

500 1,000 1,500 2,000 2,500 2014 2015 2016 2017 2018 2019F 2020F International Visitor Arrivals

Source: Ministry of Tourism, Maldives International visitor arrival as of 30 September 2019

  • With the opening of the new runway, Maldives is

aiming to attract 2 million visitors in 2020

  • Maldives Government recently announced their

proposal to add additional US$ 3.23m to the annual marketing budget for the tourism industry, totaling of US$ 9.98m for 2020 with big focus on China and Middle East markets.

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Summary IPO information of S Hotels and Resorts PCL [SHR]

60%

IPO Price

  • THB 5.2 [Par at THB 5.0]

Number newly issued shares under IPO

  • 1,437,456,000 shares

SHR’s registered capital after IPO

  • THB 18,318,200,000 or 3,663,640,000 shares

First day trading

  • 12th November 2019

Net proceeds from IPO

  • 7,351.6 MB

Major shareholders (11 Nov 2019) Purpose of the fund raising

  • To invest in future projects and acquisitions, including development
  • f Island III of Crossroads project, asset uplift of hotels operated

under Outrigger chain

  • Repayment of acquisition loan
  • Working capital purposes

S Hotels and Resorts Inter Co., Ltd.

48.6%

S Hotels and Resorts (SG) Pte. Ltd.

11.4%

Credit Suisse (Singapore) Limited

3.9%

CGS-CIMB Securities (Singapore) Pte. Ltd.

1.7%

Provident fund - The Electricity Generating Authority of Thailand

1.4%

Krungsri - KFLTFDIV

0.9%

UOB - CG - LTF

0.8%

Social Security Office

0.8%

Muang Thai Life Assurance PCL

0.7%

Singha Property Management (Singapore) Pte. Ltd.

0.7%

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Expansion strategy

Supported by primary proceeds from IPO and debt headroom available Increased debt capacity based on target debt to equity ratio Enlarged equity base from primary proceeds from IPO

10,856 18,208 5,358 1,994 9M19 Primary proceeds from IPO PF9M19 (MB) Bridging loan IPO primary proceeds net of repayment 7,542 7,542 7,542 5,358 10,666 – 19,770

9M19 PF9M19 Debt capacity based on target debt to equity

(MB) repaid on 8 Nov 2019 Debt capacity

1.2x D/E ratio Remaining long term debt

Total equity 1x-1.5x 0.4x

(1)

(1) PF9M19 is based on illustration number by adding net IPO proceed in the equity as of 30 Sep 2019 and reducing interest bearing debt amounting of 5,358 MB that SHR repaid on 8 Nov 2019

▪ Equity would be enlarged with net proceed of IPO amounting of 7,352 MB ▪ Intercompany loan amounting of 5,358 MB mainly used to acquire Outrigger hotels in 2018 has been repaid since 8 Nov 2019 (financing cost as of 9 months 2019 of this loan is 152 MB) ▪ With target capital structure 1-1.5 times, the Company has debt room to support acquisition growth of 10-20 billion Baht

(1)

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HAVE A NICE DAY Q3’19 Performance

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Portfolio Operation Performance

Self-Managed Hotels Outrigger Hotels

UK Hotels

8,530 7,915 … 6,391 6,624 5,751 5,185 4,579

78% 73% 73% 72% 50% 60% 70% 80%

9M18 9M19 Q3/18 Q3/19

ADR RevPAR Occupancy

ADR, RevPAR (THB) / Occupancy rate (%)

5,942 6,021 5,466 5,374 4,600 4,701 4,428 4,460

77% 78% 81% 83% 50% 60% 70% 80%

9M18 9M19 Q3/18 Q3/19

ADR RevPAR Occupancy ADR, RevPAR (THB) / Occupancy rate (%)

2,606 2,622 2,790 2,799 1,887 1,824 2,200 2,183 72% 70%

79% 78% – 10% 20% 30% 40% 50% 60% 70% 80% 90% 9M18 9M19 Q3/18 Q3/19

ADR RevPAR Occupancy

ADR, RevPAR (THB) / Occupancy rate (%)

Crossroads Hotels

2,991

29% 0.2 0.3 0.4

Sep'19

ADR RevPAR Occupancy ADR, RevPAR (THB) / Occupancy rate (%) 10,471

Crossroads Phase One started commercial operations on 1st September 2019

Self – Managed Hotels

  • Performance dropped resulting from THB

appreciation and slowdown of international tourist arrivals to Thailand.

Outrigger Hotels

  • Overall performance slightly performs

better than last year.

Crossroads Hotels

  • Crossroads project officially opened on 1

September 2019.

UK Hotels [Equity method]

  • UK hotel performance continued the

softening trend mainly resulted from slowdown in UK economy.

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Adjusted Net profit (loss) and margins Revenue from services

Overview of SHR consolidated financials

Operational excellence coupled with strong earnings growth

93 (6) 229 (9) Q3/18 Q3/19 9M18 9M19 (MB) 10.7% (0.7%) 14.4% (0.3%) (2) Adjusted Profit (loss) is calculated from Profit (loss) of the year and deduct unrealized loss from exchange rates and non-recurring items 875 888 1,591 2,640 Q3/18 Q3/19 9M18 9M19 (MB)

Adjusted EBITDA and margins

450 321 716 783 Q3/18 Q3/19 9M18 9M19 (MB) 51.4% 36.2% 45.0% 29.7% (1) Adjusted EBITDA is calculated from EBITDA deduct gain from exchange rate, add Interest income from Loan to JVs and adjusted by unrealized gain/loss from exchange rates and non-recurring items

(1)

(2)

Adjusted Gross profitand margins

480 474 911 1,391 Q3/18 Q3/19 9M18 9M19 (MB) 54.9% 53.4% 57.3% 52.7%

(5)

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HAVE A NICE DAY Projects under development

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Outrigger Phuket

New multipurpose hall and new guestrooms building The new flexible meeting and exhibition space including a pillar-less ballroom with six-metre-high ceilings with movable partition walls. Target : Asia Pacific, local business gatherings in Phuket and major weddings : Capacity 350 person : Expect 20-30 event per year.

CAPEX 247 MB

Multipurpose Hall Guestrooms Building : 1,900 sq.m. (700 sq.m. over) expected complete in Q1 2020 : 24 family style rooms expect to start construction in Q2 2020 Multipurpose Hall Guestroom Bldg.

Project Information

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New Maldives Co.

Island III 50% 50% Mining Jewelry Developer Food & Beverage Automobile Trading Investment Construction start 2020 Opening date 2022 Project cost US$ 56m No of keys 80 villas (120 sqm to 320 sqm per room) Positioning High-end lifestyle resort

  • Est. ADR

US$900 – US$1,000 Contribution to SHR

  • 50% share of profit from JV earning
  • Acted as Asset management eligible for

management fee to JV

Project Crossroads Phase I

Island III

Investment Structure Project Overview EWD Profile

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HAVE A NICE DAY Thank you

IR@shotelsresorts.com 02-058-9888 Ext.342