Company Profile – 3Q19
Vision
2
To be a leader in delivering exceptional experiences that anticipate and satisfy customers’ aspirations and positively impact stakeholders
Customer Focus
Result Oriented
People Development
Innovative Partnership
MINT’s Key Milestones
3
Joint venture with
in African Assets
Founded
RGR, MFG and MINOR
listed
M&A of RGR and MFG and became
Launched
Founded
50% stake in
70% stake in
Completed group
business restructuring;
Delisted
1978 1980 1982 1988-9 2000-1 2003 2008 2009 2010-11 2012-13 2014 2015 2016 2017 2018
100% stake in
Launched
Increased stake to 31% in
50% stake in
49% stake in
11% stake in
Increased stake to 100% in
49% investment in hotel & mixed use project in Maputo,
Mozambique
Acquired
in Australia
Acquired 7 hotels
Launched
Invested in
Increased stake to 69.2% in
Acquired additional 20% stake in
Acquired remaining 7
hotels & brand
Acquired additional stake from
in hotels in Africa
Acquired 74% stake in
Founded
Launched
75% stake in
Increased stake to 100% in
94.1% stake in
2019
100% stake in
Thailand
MINT – Consistent Growth
4
Total Revenues
0
20,000
40,000
60,000
80,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
THB million
0
30,000
60,000
90,000
120,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
100,000
200,000
300,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
THB million
THB million
Assets
Market Cap
MINT – Today
5
Shared Services
Hotel
• Equity-Owned• Hotel and Serviced Suites
Management• Spa
Mixed-Use
• Plaza & Entertainment• Residential Development• Point-Based Vacation Club
Casual Dining Restaurants
• Equity-Owned• Franchised
Manufacturing
• Cheese & Ice-cream• Ice-cream Ingredients and
Toppings• Coffee Roasting
Minor Hotels Minor Food
MINT – Contributions by Business Groups & Geographies
6
9M19 EBITDA Contribution 9M19 NPAT Contribution
Minor Lifestyle 1%
Minor Food17%
Minor Hotels82%
Minor Lifestyle 1%
Minor Food23%
Minor Hotels76%
Thailand25%
Overseas75%
9M19 Revenue Contribution
9M19 Revenue Contribution
Minor Lifestyle 4%
Minor Food20%
Minor Hotels76%
*Core operations, excluding non-recurring items
Thailand29%
Overseas71%
9M19 NPAT Contribution
MINT’s Presence
7
Enhance profile, reputation & recognition with 529 hotels and serviced suites, 2,297 restaurant outlets and 61 spas. With the recent investment in NH Hotel Group, MINT has expanded its operations to a total of 63 countries.
AfricaBotswana
Egypt
Kenya
Lesotho
Mozambique
Namibia
Seychelles
Tanzania
Tunisia
South Africa
Zambia
Mauritius
Asia PacificAustralia
Cambodia
China
India
Indonesia
Korea
Laos
Malaysia
Maldives
Myanmar
New Zealand
Pakistan
Singapore
Sri Lanka
Thailand
Vietnam
The AmericasCanadaUSAArgentinaBrazilChileColombiaCubaDominican RepublicEcuadorHaitiMexicoUruguay
EuropeAustria
Belgium
Czech Republic
France
Germany
Hungary
Italy
Luxemburg
Poland
Portugal
Romania
Slovakia
Spain
Switzerland
The Netherlands
UK
Andorra
Middle East
Bahrain Oman
Saudi Arabia Qatar
Kuwait UAE
Lebanon
Minor Hotels Minor Food Minor Lifestyle
To be a leading hospitality partner maximizing shareholder value
Minor Hotels
Hotel Portfolio – 529 Properties; 76,967 Rooms
9
* MLR is management letting rights (management of serviced suites)** No of rooms as at end of Sept 2019
System-wide Room ContributionBy Ownership
System-wide Room ContributionBy Geography
System-wide Room ContributionBy Brand
Others7%
7%
4%
50%
18%
10%5%
Owned25%
Leased44%
JV 3%
Managed19%
MLR9%
Asia10%
Europe61%
Middle East & Africa 6%
Oceania9%
Americas14%
Minor Hotels has a very diversified hotel portfolio, in terms of brands, ownership structure and geography. Over 90% of the rooms today are under MINT’s own brands.
Minor Hotels Portfolio
10
* MLR is management letting rights (management of serviced suites)** Maldives & Middle East contribute 2% of Minor Hotels’ revenue but 17% of NPAT because majority of the hotels in the Maldives and the Middle East are joint-venture and
managed hotels.
9M19 Revenue ContributionBy Geography
9M19 NPAT ContributionBy Geography
9M19 Revenue ContributionBy Business
Owned & Leased
87%
MLR 6%
Management 2%Mixed-use 5% Thailand
12%
Europe66%
Americas6%
Australia & New Zealand 6%
Maldives & Middle East 2%
Others8%
Minor Hotels is positioned as a real estate company with the ability to grow in the hospitality industry.
Thailand13%
Europe60%
Americas3%
Maldives & Middle East
17%
Others7%
• While owned & leased hotel portfolio is the main driver of Minor Hotels, the management letting rights (MLR) business model provides stable growth, and management contracts and mixed-use business helps with the overall profitability.
• In terms of geography, Europe is the major contributor with 66% of Minor Hotels’ revenue, and about 60% of NPAT. For the full year, Europe contribution is expected to decline as Thailand and Maldives enter high season in the forth quarter.
Anantara – Life is a Journey
11
A luxury brand for modern travelers, Anantara opens the door to unforgettable experiences in the world’s most exciting destinations.
Contemporary Accommodation for All Occasions
12
The Details That MatterBlending modern lifestyle features, a
passion for design and smooth seamless service, AVANI offers all the meaningful
details that matter for a great stay.
Welcome Home to OaksSpacious, contemporary serviced studios
and suites. Offering peace of mind, effortless short or long stays, and
essential comforts.
NH Hotel Group – A Leading European Hospitality
13
Mid- to upscale urban hotels for guests who demand excellent location and the best value for money Premium hotels in
exceptional places for extraordinary memories
Design hotels that are unconventional and
cosmopolitan13
Boutique Hotel Brands with Unique Luxury Experience
14
Experience MoreFrom thriving cities to beach paradises, a
diverse portfolio of hotels and resorts, welcoming guests with the exceptional
comfort and a sense of wellbeing.
The Ultimate African ExperienceAn unrivalled collection of luxury lodges,
camps and hotels in select locations chosen to give inside, privileged access
to the best of Kenya and Tanzania.
15
Exponential Portfolio Expansion
Over the past 8 years, number of rooms in Minor Hotels’ portfolio jumped by over 18x, through both acquisition and organic expansion. Going forward, Minor Hotels will continue to drive growth through portfolio expansion.
No. of Rooms
4,114
17,714
75,241
-
20,000
40,000
60,000
80,000
2010 2015 2018
No of Rooms
CAGR +34%
CAGR +62%
7%6%
4%
52%
17%
10%5%
Owned25%
Leased45%
JV3%
Managed18%
MLR9%
Asia9%
Europe61%
Middle East & Africa 5%
Oceania10%
Americas14%
Others 8%
11%
4%
45%
18%
10%5%
Owned22%
Leased41%
JV3%
Managed27%
MLR8%
Asia14%
Europe55%
Middle East & Africa 8%
Oceania9%
Americas14%
Others
2018 2023F*
75,241 Rooms 90,053 Rooms
* The number of rooms in 2023 only reflects those that have been signed, and will likely increase as more hotels are added to the pipeline.
16
RevPar Maximization for Owned & Lease Hotel Portfolio
Minor Hotels focuses on driving RevPar growth in each of its key markets. System-wide RevPar, however, declined over the past two years, primarily as a result of the change of mix of the type of hotels, especially with the addition of the hotels under NH Hotel Group.
4,334 4,872
1,000
2,000
3,000
4,000
5,000
2016 2018
CAGR +6%
THB
RevPar of Key Markets
Thailand Maldives Africa
Portugal Brazil NHH
System-wide RevPar
3,685
3,117
-
1,000
2,000
3,000
4,000
2016 2018
THB CAGR -8%656
829
400
600
800
1,000
2016 2018
CAGR +12%
USD
62
81
50
60
70
80
90
2016 2018
CAGR +14%
USD
73
102
70
80
90
100
110
2016 2018
CAGR +18%
EUR
399
602
300
400
500
600
700
2016 2018
CAGR +23%
BRL
71
50
60
70
80
2016 2018
EUR
17
Support from Asset Light Portfolio
Although owned and leased portfolio is Minor Hotels’ key growth driver, management letting rights portfolio provides Minor Hotels with stable growth, while management contracts offer higher profitability with minimal capital investment.
Management Letting Rights
4,570
6,935
-
2,000
4,000
6,000
8,000
2011 2018
Management Contracts
1,123
3,910
5,425
-
2,000
4,000
6,000
2010 2015 2018
No of Rooms CAGR +6%
124 141
50
100
150
2011 2018
RevPar(AUD)
CAGR +2%
2,897
6,160
-
2,000
4,000
6,000
8,000
2011 2018
Revenue (THB million)
CAGR +11%
No of Rooms
CAGR +28%
CAGR +12%
246
984
1,396
-
500
1,000
1,500
2010 2015 2018
CAGR +32%
CAGR +12%
* Management contracts exclude NHH’s portfolio
Revenue (THB million)
Case Study – Tivoli Portfolio, a Value Creation Story
18
THAILAND INTERNATIONALMinor Hotels invested in a portfolio of 14 hotels in Portugal and Brazil under the Tivoli brand in 2015-2016. Subsequently, after asset refresh and operational improvement, in July 2019, MINT entered into a sales & leaseback transaction for three of the hotel properties in Lisbon, Portugal.
Assets & Investments
313
294 98
- 100 200 300 400
2019
2015-2018
Investment CAPEX & Renovations
Gross Selling Price
Total Investment for 14 HotelsEUR 392 million
(EUR million)
Sales of 3 HotelsEUR 313 million
3 years
Operational Stats & Performance
79 96
-
20
40
60
80
100
2016 2018
RevPar (EUR)
2016 2018
EBITDA (EUR)
o The selling price of the 3 hotels is 80% of total investment amount in 14 hotels.
o The transaction implies EV/EBITDA of approx. 19x (vs. EV/EBITDA of 9.6x at the time of the purchase in 2016).
o With the transaction, the internal rate of return of the entire project has been elevated to over 20%.
o With the sales and leaseback (through NHH), MINT retains about 75% of the EBITDA of the 14 hotels portfolio.
o MINT maintains the ownership of the Tivoli brand and its operating platform in Portugal and Brazil.
o MINT will realize net gain on sale of investment of approx. EUR 62 million in 3Q19, and the proceeds have been used to pay down debt.
Mixed-use Business
Plaza & EntertainmentAnantara Vacation ClubResidential Property Development
19
Ensuring Pipeline to Accommodate Growth
20
The Estates Samui
Launched 2 AVC
Destinations Bali, Bangkok
Layan Residences
by Anantara, Phuket
St. Regis Residences
Bangkok
Torres Rani, Maputo
Launched 1 AVC
Destination Chiang Mai
2006 2010 2011 2012 2013 2015 2016 2018 2020 2023
Avadina Hills by Anantara,
Phuket
AnantaraUbud
Residences, Indonesia
Anantara Desaru
Residences, Malaysia
Launched 1 AVC
Destination Sanya
Launched 3 AVC
DestinationsSamui, Phuket,
Queenstown
Anantara Chiang Mai
Serviced Suites
Silom Office, Bangkok
An
anta
raV
acat
ion
Clu
bR
esi
de
nti
al D
eve
lop
me
nt
To launch another 5 AVC destinations
Minor Hotels – Financial Performance
21
THB million
Revenue
EBITDA
NPAT
EBITDA Margin
NetMargin
20172015
28.9% 25.7%
13.5% 10.1%
2014
19,243 23,547
27,758 30,970
50,577
5,561 6,146 7,146 7,685
12,290
2,600 3,009 2,811 3,375
4,307
2016
26.1%
12.8%
Note: Core operations, excluding non-recurring items
24.8%
10.9%
2018
24.3%
8.5%
To be a leading food operator maximizing stakeholders’ value
Minor Food
Restaurant Portfolio – 2,297 Outlets
23
* No of outlets as at end of 3Q19
System-wide Outlet ContributionBy Ownership
System-wide Outlet ContributionBy Hub
System-wide Outlet ContributionBy Brand
24%
14%
3%23%
5%
21%
4%4% 1% 2%
Equity50%
Franchised50%
Thailand 73%
Australia17%
China 4%Others 6%
Minor Food’s restaurant portfolio is well-diversified, both in terms of brands and ownership. Its three main hubs are Thailand, Australia and China.
Others
21%
10%
11%
6%9%
14%
7%
10%
1%12%
Minor Food’s Performance Breakdown
24
9M19 Revenue ContributionBy Geography
9M19 NPAT ContributionBy Geography
9M19 Revenue ContributionBy Brand
Minor Food’s revenue is well distributed among its brands. Its business is primarily in Thailand, with China as a potential growth driver and Australia as the hub with stable operations.
Thailand 63%
Australia11%
China15%
Others11%
Thailand 77%
Australia10%
China13%
Others
Minor Food Brands
25
THAILAND INTERNATIONAL
Minor Food Brands
26
THAILAND INTERNATIONAL
Manufacturing
27
Two manufacturing plants in Thailand producing over 20,000 tons of cheese and ice cream per annum
Coffee roasting factory in Australia
Manufacturing of ice-cream ingredients and toppings
28
Growth Driven by Selective Expansion
Minor Food continues to grow its number of outlets, keeping a well-balanced mix of brands, ownership and geographies.
No. of Outlets
1,148
1,851
2,270
-
500
1,000
1,500
2,000
2,500
2010 2015 2018
No of Outlets
CAGR +10%
CAGR +7%
Equity51%
Franchise49%
Thailand73%
Australia17%
China 4%Others 6%
Equity49%
Franchise51%
Thailand63%
Australia19%
China 10%Others 9%
2018 2023F*
2,270 Outlets 4,462 Outlets
24%
14%
3%23%
5%
21%
4%3%
1%2%Others
22%
9%
3%
14%4%
24%
7%
7%1%10%
Others
* Number of outlets in 2023 as per 5-year plan
Minor Food Financial Performance
29
1,550 1,572 1,684 1,913 1,521
THB million
EBITDA Margin
Net Margin
16,754 18,626
23,022 23,582 23,484
2,817 3,127 3,843 4,285
3,647
16.8% 16.7%
9.3% 7.3%
16.8%
8.4%
20162014 2015
Note: Core operations, excluding non-recurring items
2017
18.2%
8.1%
Revenue
EBITDA
NPAT
2018
6.5%
15.5%
Others – Minor Lifestyle Portfolio – 3Q19
30
# Outlets
27
-
Fashion
# Outlets
85
43
80
Total 410
6
28
# Outlets
28
122
26
Household
4
23
Total 76
14
Manufacturing of acid-based fast-moving consumer goods
100K Tons / Year
Contract Manufacturing
Lifestyle
Scomadi
Others
Key Financial Highlights
Resiliency of Thailand vs. MINT’s Responsive Strategies
32
Since 2000, Thailand has gone through several challenges, driven by both domestic and global factors. Geographical diversification and new initiatives including mixed-use development have proven to mitigate the risks, with MINT reporting profit all along.
-3,000
-1,500
0
1,500
3,000
4,500
6,000
-15%
0%
15%
30%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
MINT's NPAT % Change in Private Consumption % Change in Tourist Arrival
Source: Office of The National Economic and Social Development Board and Bank of Thailand
MINT’s Diversification Strategy
2000 – 2005
• Acquired Minor Food Group
• Launched own Pizza brand, The Pizza Company and opened TPC and SZ in China
• Launched own hotel brand, Anantara
• Entered into a JV to operate 3 hotels in the Maldives
• Launched the first timeshare project in Asia with Marriott
2006 – 2009
• Acquired Minor Corporation
• Invested in S&P Thailand, The Coffee Club Australia and Thai Express Singapore
• Entered into a JV with Serendib Sri Lanka and Elewana Africa
• Launched the first residential project, the Estates Samui
• Opened the first two overseas purely managed hotels in Bali and Abu Dhabi
2010 – 2018
• Invested in Beijing Riverside & Courtyard China, VGC in Australia, Corbin & King in the UK and non-US operations of Benihana
• Invested in hotels in Sri Lanka, Phuket, Vietnam, Cambodia, Zambia, Namibia, Botswana, Lesotho and Mozambique, in Oaks Hotels & Resorts in Australia, in Tivoli Hotels & Resorts in Portugal and Brazil and in NH Hotel Group in Spain
• Launched AVANI brand, Anantara Vacation Club, and the new residential projects, Layan Residences by Anantara, Avadina Hills by Anantara and Anantara Chiang Mai Serviced Suites
Pattaya Riot
AirportClosure
Tsunami RajprasongRiot
Bangkok Coup
FloodingSARS Sub-primeCrisis
Bangkok Shutdown Coup
THB million
ErawanBombing
Mourning
Phuket Boat Incident
MINT Financial Highlights
33
Revenue
EBITDA
NPAT
THB million
EBITDA Margin
NetMargin
22.1% 21.0% 20.7% 20.9%
10.9% 10.3% 8.4% 9.2%
20.7%
7.6%
20182014 20162015 2017
39,700 45,678
54,285 58,644
78,499
8,762 9,573 11,256 12,273
16,245
4,333 4,705 4,576 5,415 5,957
* The financials above reflect performance from operations, and therefore exclude non-recurring items.
MINT Financial Highlights
34
Interest-Bearing D/E Dividend Per Share & Payout Ratio
0.25 0.35 0.35 0.40 0.40
0.10 35.6% 32.8% 33.7% 32.8% 31.0%*
0%
20%
40%
60%
0.00
0.10
0.20
0.30
0.40
2014 2015 2016 2017 2018
Cash Stock Payout Ratiox THB
1.11.2 1.2
1.0
1.5
0.0
0.5
1.0
1.5
2014 2015 2016 2017 2018
***
* EPS calculation based on core operation, excluding non-recurring items
THB million THB million
Total Assets Total Equity
74,279 98,382 108,453 119,100
267,700
0
100,000
200,000
300,000
2014 2015 2016 2017 2018
30,024 36,711 40,797
50,504
83,074
0
20,000
40,000
60,000
80,000
100,000
2014 2015 2016 2017 2018
Other Corporate Information
0
15
30
45
60
2001Investment
CashDividend
StockDividend
Warrants Capital Gain YTD Value
Minor Group34%
Foreign Institutions29%
Osathanugrah Group10%
Thai Institutions17%
Royal Family3%
Others7%
Shareholders & Management
36
Shareholding Structure
Shareholders’ Return
THB
Management Structure
1. William E. Heinecke Chairman and Group Chief Executive Officer
2. Dillip RajakarierChief Operating Officer of Minor International Chief Executive Officer of Minor Hotels
3. Paul Charles KennyChief Executive Officer of Minor Food
4. James Richard AmatavivadhanaChief Executive Officer of Minor Lifestyle
5. Brian James DelaneyCorporate Chief Financial Officer
6. Stephen ChojnackiChief Commercial Officer and General Counsel
7. Kulshaan SinghChief People Officer of Minor International
8. John Scott Heinecke Chief Operating Officer of Minor FoodAs of Nov 2019
18 634 27 5
As of Oct 2019
Sustainability Development
37
Elevating People Development
Driving People DevelopmentWe focus our efforts in developing people, from grassroots to leaders, with education, skills and life-long learning, empowering them to achieve their highest potential.Fostering Social Responsibility MindsetWe encourage and foster a social responsibility mindset among our employees and with our partners.
Elevating Sustainable Value
Chain
Engaging in End-to-End Customer ExperienceWe strive to enrich our customers’ experiences through end-to-end engagement and by delivering the best products and services that provide 100% satisfaction.
Committing to Long-term and Sustainable PartnershipsWe foster long-term relationships with our partners along the value chain to achieve mutual sustainable benefits.
Managing Environmental ImpactWe commit to produce a positive environmental and social impact in the locations where we operate.
Elevating Good Governance
Practicing Good Corporate GovernanceWe build a strong platform for sustainable organization by practicing good corporate governance in all business operations.
Elevating Environmental
Protection
Recent Awards
38
2018 All-Asia Executive Team Rankings: Honored Company in the Emerging Markets – Country Winner, Institutional Investor
2018 All-Asia Executive Team Rankings: Top 3 Thailand's Best CEO, Institutional Investor
2018 All-Asia Executive Team Rankings: Top 3 Thailand's Best IR Professional, Institutional Investor
Best SET Sustainability Awards 2018 (SET Market Capitalization of Over THB100bn), Stock Exchange of Thailand
Included in Dow Jones Sustainability Emerging Markets Index (DJSI) 2018 in Hotels, Resorts and Cruise Lines Industry(fifth consecutive year), S&P Dow Jones Indices and RobecoSAM
Included in FTSE4Good Emerging Index 2019 (fourth consecutive year), FTSE Russell
Included in MSCI ESG Leaders Indexes (February 2019), MSCI*
Board Of The Year Awards 2018 (July 2019), Thai Institute of Directors
Anantara Hotels & Resorts
o No. 9 World's Greatest Hotel Group, The Telegraph (UK)
o World's Best Awards: No. 13 Top Hotel Brands, Travel+Leisure (USA)
o Gold Stevie® Winner, The International Business Awards
o Readers’ Choice Awards: No. 4 Best Hotel Brand for Leisure, DestinAsian
US 2019 Travel & Leisure World’s Best Awards
o Tivoli Palacio De Seteais Sintra Hotel – No. 1 Best Resort in Spain & Portugal
Minor Food – Thailand’s Top Corporate Brand Values 2018 in F&B Sector, The Stock Exchange of Thailand & Chulalongkorn Business School
First Runner Up in Top Curl Award 2018, International Dairy Queen
Overall Performance & Corporate
Minor Hotels
Minor Food
Minor Food – Thailand’s Top Corporate Brand Values 2018 in F&B Sector, The Stock
Exchange of Thailand & ChulalongkornBusiness School
Tivoli Palacio De Seteais Sintra Hotel – No. 1 Best Resort in Spain & Portugal, by US 2019
Travel & Leisure World’s Best Awards
*Disclaimer: The inclusion of Minor International Pcl. in any MSCI Index and the use of MSCI logos, trademarks, service marks or index names herein, Do not
constitute a sponsorship, endorsement or promotion of Minor International Pcl. by MSCI or any of its affiliates. The MSCI Indexes are the exclusive property of
MSCI. MSCI and the MSCI Index names and logos are trademarks or service Marks of MSCI or its affiliates.