This presentation contains certain forward looking statements This - - PowerPoint PPT Presentation

Central Plaza Hotel Public Company Limited

September 1, 2014

p y

This presentation contains certain forward looking statements Such forward looking This presentation contains certain forward looking statements. Such forward looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in the forward looking statements as a result of various factors and circumstances. The views, analyses and opinions expressed herein contain some information derived from publicly available sources and third party information providers. No representation or warranty is made as to the accuracy, completeness, or reliability of such

• information. This presentation should not be relied upon as any recommendation, view,
• pinion representation or forecast of “Central Plaza Hotel Plc ” Nothing in this presentation
• pinion, representation or forecast of Central Plaza Hotel Plc. Nothing in this presentation

should be construed as either an offer to sell, a solicitation of an offer to buy or sell shares or any type of securities in any jurisdiction. This presentation is not intended to be any type of investment advice and must not be relied upon as such. You must always seek the relevant professional advice before otherwise making any such financial, legal or commercial decisions.

2

I T E D T E D N Y L Y L I M I C O M P A O M P A N U B L I C B L I C C

Company Background

O T E L P T E L P U

Company Background Hotel Business

L A Z A H A Z A H O

Hotel Business Food Business

R A L P R A L P L

Outlook and Financial Highlight

C E N T C E N T 3

I T E D T E D N Y L Y L I M I C O M P A O M P A N U B L I C B L I C C O T E L P T E L P U L A Z A H A Z A H O R A L P R A L P L C E N T C E N T 4

CENTEL’s presentation

CENTEL:PartofCentralGroup

Central Trading Co., Ltd. (Holding company since 1947)

CENTEL: Part of Central Group

Department Store Group (DSG) Fast Moving Consumer Group (FMCG) Hardlines Group (HDLG) Office Mate Group (OFMG) Central Pattana Group (CPN) Central Marketing Group (CMG) Centara Hotel & Resort Group (CHR) Central Restaurant Group (CRG)

• perator of

(FMCG)

( )

( )

• nline business

p ( )

(CMG)

Group (CHR)

(CRG)

• listed company

CENTEL’s Shareholder Structure

listed company “CENTEL” Foreigner 11% Local I t

Price (as of Dividend CENTEL’s Equity Market Information

Investors 22%

Family

Symbol Sector Price (as of 14/08/14) Market Cap Dividend Policy CENTEL Tourism Bt37.75mn Bt50.96bn 60%

67%

5

As at 30 June 2014

CENTEL’s presentation

CENTEL’sMilestone CENTELs Milestone

e

• f

• f Baht

Corporate

business

1978 1983 1984 1990 1991 1998 2006 2007 2008 2009 2010 2011 2012 2013

• f KFC

• f Auntie

Food

• pening of

• pening of

ness

• Centara

• n 24

Hotel busin

• Centara

• Centara

6

CENTEL’s presentation

CENTEL: Revenue and Profit by Business

C ti th th h th i f h t l d i iti f f d b d

Total Revenue by business segment (THB million): 4-year CAGR=20 % EBITDA by business segment (THB million): 4-year CAGR = 27%

Continuous growth through the opening of new hotels and acquisition of new food brands

3 800 Hotel Food 2,365 38% 1 669 Hotel Food 11,474 8 436 9,400 14,829 17,469 3,164 53% 32% 3,800 58% 48% 54% 42% 52% 46% 62% 1,443 1,669 68% 8,436 , 46% 44% 54% 56% 43% 57% 44% 56% 47% Hotel Food 2009A 2010A 2011A 2012A 2013A 2009A 2010A 2011A 2012A 2013A EBITDA Margin by business segment Hotel Food Owned Hotel Inventory (rms) and Food Outlets 22% 19% 26% 31% 31% 2,805 3,067 3,067 3,514 3,654 478 512 603 677 743 13% 17% 16% 14% 13%

2009A 2010A 2011A 2012A 2013A

7

2009A 2010A 2011A 2012A 2013A

I T E D T E D N Y L Y L I M I C O M P A O M P A N

HOTEL

U B L I C B L I C C

HOTEL

O T E L P T E L P U L A Z A H A Z A H O R A L P R A L P L C E N T C E N T 8

CENTEL’s presentation

6 CentaraBrands:

Offering variety of brands to capture opportunity in different market segments. Offering variety of brands to capture opportunity in different market segments.

Five-star C t Four-star C t A series of distinctive properties d i d t Two categories Centara Offers affordable h t l d Category Category designed to an intimate scale Centara Grand and Centara hotels and resorts Designed for cost- conscious travelers who mostly Set in prime city and beachfront Premium settings in city-centre locations, Imparting a residential Located to attract the corporate and the Providing a quality experience designed to

• st y

do all their

• wn

bookings

• n-line

beachfront locations , beach, and island destination quality. and the leisure long- stay guest designed to exceed expectations

9

CENTEL’s presentation

Hotel Business Strategy: focusing on hotel management but also gy

g g investing in new owned hotels by employing internal cash flow/ REIT



Asset Light Strategy: focusing

Owned Hotel



Asset Light Strategy: focusing

• n expansion of portfolio through

hotel management business;



Asset Right Strategy: expanding

• ur portfolio through:

 Investing in property (owned or

Hotel

Property Fund JVs Hotel

g p p y ( JVs) using internal cash flow; and

 Using property fund/REIT as a

Managed

g y vehicle for making new investments.

Hotel

10

CENTEL’s presentation

Hotels in Operation (1/2):

Total 43 hotels in operation by the end

• f

2Q14

• f

8,216 rooms (including 15

• wned

and JV

Asset types # Properties #Rms Owned & JV hotels 15 3,812 Hotels under management

( g properties and 28 hotels under management contract).

Hotels under management contracts 28 4,404 Grand total 43 8,216

List of 15 owned & JV hotels (3,812 rooms)

Hotel Name #Rms Country Owned Hotels Hotel Name #Rms Country Owned Hotels (continued)

st o 5 o ed & J

• te s (3,8
• s)

1 Centara Grand at CentralWorld 512 Thailand 2 Centara Grand Ladprao 565 Thailand 3 Centara Grand Hua Hin 249 Thailand 9 Centara Mae Sot Hill Resort 113 Thailand 10 Centara Hat Yai 245 Thailand 11 Centara Villas Samui 100 Thailand 3 Centara Grand Hua Hin 249 Thailand 4 Centara Grand Phuket 262 Thailand 5 Centara Grand Krabi 192 Thailand Centara Grand Mirage 11 Centara Villas Samui 100 Thailand 12 Centara Grand Maldives 112 Maldives 13 Centara Maldives 140 Maldives Property Fund Hotel 6 Centara Grand Mirage Pattaya 555 Thailand 7 Centara Villas Phuket 72 Thailand 8 Centara Karon Resort 335 Thailand Property Fund Hotel 14 Centara Grand Samui 202 Thailand Joint Venture Hotel Centara Kata Resort 8 Phuket 335 Thailand 15 Centara Kata Resort Phuket 158 Thailand

11

CENTEL’s presentation

Hotels in Operation (2/2):

Hotel Name #Rms Country

p ( )

Hotel Name #Rms Country

List of 28 hotels under management contract (4,404 rooms)

32 Centara Poste Lafayette, Maurittius 100 MUS 33 Centra Government Complex 204 THA 34 Centra Coconut Beach Samui 55 THA Managed Hotel 16 Khum Phaya Resort, Boutique 87 THA 17 Centara Udon Thani 259 THA 18 C t Ch T l T t 44 THA 35 Centara Watergate Hotel & Spa Bangkok 281 THA 36 Khao Lak Seaview Resort & Spa, Centara 215 THA 18 Centara Chaan Talay, Trat 44 THA 19 Centara Duangtawan Chiang Mai 512 THA 20 Centara Sappaya, Rayong 13 THA 21 Centra Ashlee Hotel Patong 110 THA 37 Centra Central Station Bangkok 150 THA 38 Centara Grand Modus Pattaya 215 THA 39 Centara Grand Phrathamnak Resort Pattaya 165 THA g 22 Centara Anda Dhevi, Krabi 138 THA 23 Centara Plaza Hotel Pattaya 152 THA 24 Nova Hotel & Spa Pattaya, Boutique 79 THA Pattaya 40 Centara Grand Azuri Resort & Spa Mauritius 100 MUS 41 The Blue Marine Resort & Spa Phuket 266 THA 25 Chen La Resort & Spa Phu Quoc, Boutique 108 VNM 26 Waterfront Suites Phuket 39 THA 27 Centra Taum Resort Bali 90 IND Phuket 42 Centara Grand Azuri Residences & Suites Mauritius 70 MUS 43 Centara Ceysands Resort & Spa Srilanka 165 SRI 28 Centara Grand West Sands, Phuket 316 THA 29 Centara Hotel Khonkaen 196 THA 30 Centara Sandy Beach Da Nang Vietnam 118 VNM Srilanka Vietnam 31 Centara Koh Chang Resort 157 THA Note: Opened in 1H14

12

CENTEL’s presentation

Hotel Portfolio including Pipeline

Centara Grand 3,833 82 200 112 100 138 300 360 125 5,250

443 rooms

Total 70 hotels, including 43 hotels in

Centara 4,220 387 250 100 118 391 154 5,620 Centra 1,001 90 1,091 Centara Boutique Collection 166 108 274

portfolio: 13,4

hotels in

• peration by

the end of 2Q14 and 27 hotels under

Collection Centara Residence & Suite 135 70 530 735 Cosi 473* 473

tal hotels in p

hotels under development , scheduled to

• pen between

2H14 and 2017

Cosi 473 473 Total 9,828 559 200 362 270 894 391 300 360 154 125 13,443

To

s 2H14 2015 2016 2017 Total

Proportion of rooms: Owned vs. Managed

a d

e: 5,227 room

13,443 rms

Managed 69%

• tels in pipelin

A t J l 15 2014

13

Ho

Noted: * Included 2 owned COSI projects in Samui and Pattaya As at July 15 ,2014

13

CENTEL’s presentation

Centara Guests by Region: y g

Asia increased its portion significantly during the last few years, driven by Chinese. Despite smaller contribution, Europe continued its room night growth yoy driven by Russian.

3% 2%

Guests by Regional: 2007 vs.2013 Room Night 1H13* vs 1H14 6%

1H13 1H14

5% 2% 3% 9%

36%

10% 3% 2% 6%

2% 5% 2% 2% 6%

Middl E t USA Others

48%

18%

36%

16%

2007 2013

1 % 10% 3% 15% 9% 2%

Thailand Australia Middle East

14% 27%

42% 22% 17% 41% 26%

Europe Asia Thailand

Europe Asia Thailand Australia Middle East USA Others 42%

p

Note: *revised figures

14

CENTEL’s presentation

Hotel Performance Snapshot:

N B k k d M ldi ti d t f ll G d l f B k k i t d f ll i Non-Bangkok and Maldives continued to perform well. Gradual recovery for Bangkok is noted following the unrest in 1Q-14 and coup d’etat in May-14

OCC, ARR and RevPar Total Revenue (Btmn) and # of rooms

2,233 3,067 3,654

OCC (%) 2007A 2010A 2013A*

Bangkok 73.2 50.7 77.5 Upcountry 58.2 61.2 80.3 Maldi es 84 8

1H13 1H14 77.5 49.4 80.5 80.6 78 8 89 9 3,743 3,812

2,887 4,105 8,286

Maldives

• 84.8

Average 62.1 58.1 79.8

ARR (Bt) 2007A 2010A 2013A*

Bangkok 2 273 2 752 3 097 78.8 89.9 79.5 72.4

1H13 1H14 3 074 3 023 4,144 4,061

2007A 2010A 2013A Total Revenue No.of rooms

EBITDA **(Btmn) and EBITDA margin

Bangkok 2,273 2,752 3,097 Upcountry 3,752 3,639 3,886 Maldives

• 15,376

Average 3,391 3,409 4,370 3,074 3,023 4,244 4,289 16,282 18,296 4,499 5,186

1H13 1H14 32% 19% 31%

g

RevPar (Bt) 2007A 2010A 2013A*

Bangkok 1,664 1,396 2,401 Upcountry 2,184 2,225 3,122 4,499 5,186

1H13 1H14 2,383 1,494 3,416 3,457 33% 33%

919 793 2,600

• 1,000

2007A 2010A 2013A

Maldives

• 13,040

Average 2,046 1,979 3,486 Noted: *Included Maldives since 2013 12,825 16,445 3,579 3,755

1,373 1,350

1H13 1H14

15

2007A 2010A 2013A

Noted: **Excluded extra items and deferred rental income from PFPO

CENTEL’s presentation

Revenue Contribution by Location:

New developments in the last 5 years have resulted in better diversification of source of income.

Revenue Contribution

38% 37% 32%

2007A 2010A 2013A 2014E

21% 15% 20% 13% 20% 8% 15% 15% 15% 24% 8% 15% 16% 8% 21% 3% 3% 1% 4% 9% 3% 13% 1% 8% 2% 5% 7% 0.4% 8% 2% 6% 8% 1%

Bangkok Hua Hin Hat Yai Krabi Pattaya Phuket Samui Tak Maldives g y

Revenue Per Room Available – RevPar (Bt) Bangkok Hua Hin Hat Yai Krabi Pattaya Phuket Samui Tak Maldives 2007A 1 664 4 305 528 3 562 1 283 3 135 497 2007A 1,664 4,305 528 3,562

• 1,283

3,135 497

• 2010A

1,396 3,823 863 3,225 2,374 1,734 2,746 410

• 2013A

2,401 4,724 1,198 3,742 3,750 3,028 3,099 415 13,040 1H13 2 383 5 079 1 212 4 142 4 085 3 367 3 412 400 12 825

16

1H13 2,383 5,079 1,212 4,142 4,085 3,367 3,412 400 12,825 1H14 1,494 5,193 1,038 4,498 3,957 3,458 3,589 406 16,445

I T E D T E D N Y L Y L I M I C O M P A O M P A N

FOOD

U B L I C B L I C C

FOOD

O T E L P T E L P U L A Z A H A Z A H O R A L P R A L P L C E N T C E N T 17

CENTEL’s presentation

Food Business Strategy: Currently, Operating in Thailand but looking gy

y p g g for an opportunity to expand in overseas

Growing existing brands through

Owned Outlet Expansion

 Growing existing brands through

• utlet expansion across Thailand,

particularly in upcountry;

 Continue looking for opportunity to

expand in high potential food segment via:

 Acquisition by using internal cash

Food

 Acquisition by using internal cash

flow from operation;

 Joint venture with international

partner.

Acquisition

Joint Venture

p

18

CENTEL’s presentation

Food Portfoliosof 12 Brands (1/2): ( )

7 Japanese, 3 US and 2 owned brands

Mister Donut (MD) KFC Auntie Anne’s (AA) Pepper Lunch (PL) Chabuton (CBT) Cold Stone (CSC) (MD) (1978)

• Founded in the

United States in 1956 KFC (1984)

• The world's

second largest restaurant h i ll (AA) (1988)

• An American

chain of pretzel bakeries (PL) (2007)

• A "fast-steak"

restaurant franchise l i th Chabuton (CBT) (2010)

• TV Champion

chef’s Japanese (CSC) (2010)

• An American-

based ice cream parlor h i

• Now

headquartered in Japan, where it has more than 1,300 stores chain overall (as measured by sales) after McDonald’s, as

• f Dec 2012.
• Over 18,000
• More than 300

franchisees with more than 1,200 locations in the United States and popular in the Tokyo area, founded in 1994

• Over 200 stores

in 11 countries ramen restaurant

• Supervised by
• Mr. Yasuji

Morizumi, who is also the chain

• premium ice-

cream, or ice cream made with approximately sto es

• A presence in

Taiwan, South Korea, China, Philippines, Thailand, and El Salvador ,

• utlets in 120

countries more than 23 countries globally cou t es

• wner of the

first ramen shop appeared in MICHELIN Guide LA app o ate y 12–14% butterfat

• Since 2008, an

attempt to increase its presence El Salvador presence

• utside the

United States

19

CENTEL’s presentation

FoodPortfoliosof12Brands(2/2) Food Portfolios of 12 Brands (2/2)

Ryu Shabu (RYU) The Terrace (TT) (2010) Ootoya (OTY) (2011) Yoshinoya (YO) (2011) Tenya (TEN) (2013) Katsuya (KAT) (2014) (2010)

• In house brand

Japanese Restaurant

• Osaka mix

(2010)

• Central group's

Thai cuisine restaurant (2011)

• Acquired total of

33 outlets in Sep 2011

• Japanese home

(2011)

• The largest

chain of beef bowl restaurant founded in 1899 (2013)

• The most

successful Tendon chain restaurants in (2014)

• Japanese

market leader (Ton-Katsu category) Osaka mix shabu shabu all you can eat Japanese home cooking style restaurant

• More than 250

stores in Japan

• A presence in
• Its motto is

“Tasty, low- priced, and quick”. Japan

• Providing

customers with high-quality Tendon and Tempura

• Quick , fresh

and delicious deep fried pork

• Using an

automated fryer th t b p Taiwan, Hong Kong, Indonesia, Singapore and Thailand Tempura that can be served within 5 minutes

• 214 outlets in

Japan (93

• wned+121

franchise) since 1998

20

CENTEL’s presentation

Food Performance Snapshot: p

Continuous growth despite the challenging times

SSS and TSS growth (%) Total Revenue (Btmn) and # of outlets

767 473 512 743

SSS TSS

704 767

4,295 5,295 9,183

• 100

15 4%

4,593 4,901

1H13 1H14

2007A 2010A 2013A

Total Revenue # of outlets

EBITDA (Btmn) and EBITDA margin

• 3.1%

14.0% 0.9% 4.0% 15.4% 9.7% 3.1%

• 0.9%

13.0% 7.4%

1H13 1H14 15% 17% 13%

1,500 2,500 Noted: 2009 terminated Pizza Hut and Baskin Robbins

2007A 2010A 2013A 1H13 1H14

15% 9%

638 875 1,199

(500) 500 2007A 2010A 2013A 673 459

21

( ) 2007A 2010A 2013A

EBITDA %EBITDA Margin

1H13 1H14

CENTEL’s presentation

Revenue Contribution by Brand: Top 4 brands, KFC, MD, AA y

p and Ootoya contributing 90% of food revenue

Revenue Contribution

52% 60% 52%

2007A 2010A 2013A

TT YO TEN

Ootoya 9% Other heavy food 8% Other light food 2%

25%25% 20%

PH CBT RYU PL CSC BP CBT RYU PL CSC BP BR

KFC 54%

AA 8%

1H14

9% 7% 7% 9% 2% 4% 8% 9% 8% 3%

KFC Mister Donut Auntie Anne's Ootoya Other Heavy Food Other Light Food

MD 19%

Anne s Food Food Number of outlets KFC Mister Donut Auntie Anne’s Ootoya Other Heavy Food Other Light Food Total 2007A 136 188 81 26 42 473 2007A 136 188 81

• 26

42 473 2010A 160 245 83

• 10

14 512 2013A 194 309 117 40 61 22 743 1H13 186 296 109 37 52 24 704

22

1H13 186 296 109 37 52 24 704 1H14 199 321 120 44 63 20 767

I T E D T E D N Y L Y L I M I C O M P A O M P A N U B L I C B L I C C O T E L P T E L P U

Hi hli ht

L A Z A H A Z A H O

Highlight

R A L P R A L P L

g g

C E N T C E N T 23

CENTEL’s presentation

PortfolioExpansion Portfolio Expansion

Asset Light Expansion: Management fees and # of rooms Food Outlet Expansion

8 731

400 Management Fees # of JV and managned rooms

rooms

Bangkok Upcountry 6,720 8,731

300 350

743 920

4,236 5,136

200 250

Btmn 603 677 743 45% 50%

2,866 3,065

50 100 150

59% 59% 55% 50%

50 2011A 2012A 2013A 2014E 2015E 2016E 2011A 2012A 2013A 2016E

Note: assumed 8 10 new contracts per annum plus

24

Note: assumed 8‐10 new contracts per annum plus 3‐4 hotels for COSI brand since 2015

CENTEL’s presentation

EarningprospectVSInvestment Earning prospect VS Investment

Hotel Food

Revenue by business: CAGR 12%

Investment (Btmn)

54% 57% 58% 60% 60%

Hotel Food 0.9 0 8 0 8

5 000 6,000

CAPEX Interest Bearing Debt/ Equity

46% 43% 42% 40% 40% % 60%

0.8 0.8 0.7 0.6

3 000 4,000 5,000

2014E 2015E 2016E 2017E 2018E Net Profit by business: CAGR 20%

1 000 2,000 3,000

35% 44% 43% 45% 42%

Hotel Food

1,000 2014E 2015E 2016E 2017E 2018E

65% 56% 57% 55% 58% 44% 43% 45% 42% 2014E 2015E 2016E 2017E 2018E

Note: - Included first 2 owned COSI in total of Bt254mn and Bt351mn, in 2014E and 2015E ,respectively

• Included COSI per hotel / year since 2017

Included assumption of new hotel construction during

25

2014E 2015E 2016E 2017E 2018E

• Included assumption of new hotel construction during

2015 – 2017 in total project cost of Bt6,600mn

• EBITDA before gain and expense from Property

Fund - CTARAF

CENTEL’s presentation

Interest Bearing Debt: average cost 4.2% as at 30 Jun 2014 g

g

31 D 13 30 J 14

Interest Bearing Debt 31 Dec 13 vs 30 Jun 14 Interest Bearing Debt as at 31 Mar ,14: Bt10,617mn

A t 31 D 13 31 J 14 5,144 5 000 0 6,000.0 31-Dec-13 30-Jun-14 Bank

• verdraft

As at 31-Dec-13 31-Jun-14 Interest Bearing Debt/ Equity 1.0X 1.0X 4,386 4,000.0 5,000.0

• verdraft

2.8% Short- term loan 16 9% Debenture 264% 2,243 2,799 1,790 2,799 2,000.0 3,000.0 16.9% Current portion of Long-term 26.4%

30-Jun-14

19 1,251 302 1,341 1,000.0 Long term loans 12.6% Long-term loans 41.3% 19

• Bank
• verdraft

Short-term loan Current portion of Long-term loans Long-term loans Debenture S/T Loan (32.3%) Bt3,432mn L/T Loan (67.7%) Bt7,185mn Fi d R t (33 8%) Bt3 590

26

Fixed Rate (33.8%) Bt3,590mn Float Rate (66.2%) Bt7,027mn

CENTEL’s presentation

CENTELMilestone

2013

CENTELMilestone

• Hotel 42

hotels (15

• wned/JVs

and 27 managed)

• QSR 12

brands 743

2018E

• Hotel 80

hotels (21

• wned/JVs

2009

• utlets
• wned/JVs

and 59 managed)

• QSR 14
• Hotel 19

hotels (13

• wned/JVs

and 6

• QSR 14

brands > 1,000 outlets and 6 managed)

• QSR 5

Brands 478 Brands 478

• utlets

27

CENTEL’s presentation

hankY

• u

T

hank Y

• u

T

CENTEL’s presentation

Appendix A

T

• urism Arrivals:

Number of international tourists arrivals continue to rise

CENTEL’s presentation

Number of international tourists arrivals continue to rise

• In 2013, top source market continues to contribute the significant growth, including tourists from

China (+69%), Russia (+32%), Malaysia (+17%) and Japan (+12%)

International Arrivals by Nationality: 1H14 Number of International Tourist Arrivals to Thailand

64% 61% 64% 70% 80%

40.0 East Asia Europe Americas South Asia Oceania Middle East Africa Market OCC Centel OCC

56% 49% 51% 58% 61% 65% 64% 61% 58% 64% 70%

25.0 30.0 35.0 Persons

22.3

Nationality 1H13 1H14 % ∆ yoy 26.7

8 2 10.3 12.5 16.1 4.0 4.1 4.4 4.9 5.6 6.3

• 100.00%
• 50.00%

10.0 15.0 20.0 Million P

14.6 14.1 15.9 19.1 Nationality 1H13 1H14 % ∆ yoy East Asia 7.8 6.4

• 18.0%

Europe 3.2 3.4 5.5% The Americas 0.6 0.6

• 2.1%

7.6 7.1 8.2

• 150.00%

0.0 5.0 2008A 2009A 2010A 2011A 2012A 2013A

South Asia 0.6 0.6

• 10.2%

Oceania 0.5 0.5 0.5% Middle East 0.3 0.2

• 12.3%

Africa 0 1 0 1 9 3%

Source: BOT and TAT Africa 0.1 0.1 9.3% Total 13.1 11.8

• 10.2%

30