quarterly meeting # 2/2016 - the erawan group · 1q16 weight 1q16 y-y 1q16 3y/cagr china 26% 29%...

Quarterly Meeting # 2/2016

1Q16 Performance & Outlook

13 May 2016

2 © 2016 ERAWAN. All rights reserved.

The views expressed here contain some information derived from publicly available sources

that have not been independently verified. No representation or warranty is made as to the

accuracy, completeness or reliability of the information. Any forward looking information in

this presentation has been prepared on the basis of a number of assumptions which may

prove to be incorrect. This presentation should not be relied upon as a recommendation or

forecast by The Erawan Group PLC. Nothing in this release should be construed as either

an offer to sell or a solicitation of an offer to buy or sell shares in any jurisdiction.


Executive Summary

International tourist arrivals grew in all key source markets at

15% in 1Q16. Hit highest record.

Following our strategy to focus investment in high growth

markets and high growth segments, we continue to capture

industry demand growth and expand market share.

In 1Q16, our core performance hit record high with operating

income and NPAT increased 6% and 37% respectively.

2 HOP INN opened in 1Q16, resulting to 17 HOP INN or

35 hotels at the end of 1Q16.


4 Q & A

3 Outlook

Agenda

1 Industry Update

2 Performance Review 1Q16


International Tourist Arrivals

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec

2013 YTD 7.01 M 2014 YTD 6.38 M

2015 YTD 7.88 M 2016 YTD 9.04 M

YoY 2015-2016

Millions YTD 9.04 millions, +15% y-y

Source : Department of Tourism as of Mar-16

+13% +15% +16%


Tourist Arrivals by Quarter


7.0

6.1

6.6 7.0

6.4

5.1

5.8

7.5 7.9

6.9 7.3

7.8

9.0

Q1 Q2 Q3 Q4

2013 2014 2015 2016



Tourist Arrivals by Source Markets

East Asia 64%

Europe 23%

The Americas

4%

South Asia 4%

Oceania 2%

Middle East 2%

Africa 1%

Continent

1Q16

YoY

East Asia 17%

Europe 11%

The

Americas 16%

South Asia 9%

Oceania 0%

Middle East 8%

Africa 13%

Total 15%

1Q16 Contribution



Tourist Arrivals by Key Source Markets

1Q15

Weight

1Q16

Weight

1Q16

Y-Y

1Q16

3Y/CAGR

China 26% 29% 29% 31%

Malaysia 11% 10% 1% 9%

Japan 5% 4% 3% 3%

South Korea 5% 5% 14% 7%

India 3% 3% 12% 1%

Laos 3% 4% 42% 12%

United Kingdom 3% 3% 17% 5%

Singapore 3% 2% 5% 4%

United States 3% 3% 16% 5%

Russia 4% 4% 11% 15%

Other 34% 34% 9% 4%

Grand Total 100% 100% 15% 9%


4 Q & A

3 Outlook

Agenda

1 Industry Update



Core Performance Summary

1,447

1,536

1Q15 1Q16

6%

Group Operating Income

490 532

1Q15 1Q16

EBITDA

140 191

1Q15 1Q16

Net Profit

9%

37 %


1Q14 1Q15 1Q16

Room Revenue

1Q14 1Q15 1Q16

Luxury Segment 7%

1Q14 1Q15 1Q16

Midscale Segment 7%

1Q14 1Q15 1Q16

Economy Segment 4%

9% Total Group

Budget Segment 134%


Room Revenue by Country of Residence

Country 1Q16

Contribution Y-Y

China 16% 33%

Thailand 12% 1%

United States 11% 7%

Singapore 6% 14%

Hong Kong 4% 1%

India 4% 7%

United Kingdom 4% 1%

Germany 4% 9%

Russia 4% 35%

South Korea 4% 19%

Others 31% 3%

Total Group 9%


F&B Revenue

1Q14 1Q15 1Q16

Luxury Segment

4%

1Q14 1Q15 1Q16

Midscale Segment 11%

1Q14 1Q15 1Q16

Economy Segment

33%

2% Total Group


Hotel Revenue

1Q14 1Q15 1Q16

Luxury Segment 2%

1Q14 1Q15 1Q16

Midscale Segment 8%

1Q14 1Q15 1Q16

Economy Segment 8%

6% Total Group

1Q14 1Q15 1Q16

Budget Segment 135%


Operating Income

1Q15 Luxury Midscale Economy Budget Rental 1Q16

MB

1,536 1,447 2% 8% 8% 4% 135%

1Q15 BKK Pattaya Phuket Others 1Q16

MB

1,536 1,447 2% 6%

21% 16%

By Segment

By Destination


EBITDA

1Q15 Luxury Midscale Economy Budget Rental 1Q16

532

490 1% 12%

15% 2% 189%

1Q15 BKK Pattaya Phuket Others 1Q16

532

490 1% 10%

53% 30%

MB

MB

By Segment

By Destination


Consolidated Profit & Loss Statement

In Baht Millions 1Q15 1Q16 %Y-Y

Hotel Income 1,398 1,485 6%

Rental and Service Income 50 51 4%

Total Operating Income 1,447 1,536 6%

Other Income 9 9 4%

Total Income 1,456 1,545 6%

Operating Expenses (965) (1,013) 5%

EBITDA 490 532 9%

Share of Profit in ERWPF 7 8

ERWPF Rental Payment (28) (28)

Depreciation (177) (180)

Interest Expenses (99) (93)

Taxes (39) (44)

Minority Interest (15) (7)

Normalized Net Profit/(Loss) 140 189 35%

Non Recurring Items - 3

Net Profit/(Loss) 140 191 37%

EBITDA Margin (%) 33.7% 34.5%


0

4,000

8,000

12,000

16,000

FY2014 FY2015 1Q16

Baht Million

Total Assets

Summary of Financial Position

FY2014 FY2015 1Q16

Total Liabilities & Equity

ST Loan

LT Loan

Other Liabilities

Equity


Debt to Equity Ratio

2.6

2.0 2.1

1.3

1.8 1.8 1.7

0.5

0.7

0.9

1.1

1.3

1.5

1.7

1.9

2.1

2.3

2.5

2.7

2.9

4,000

5,000

6,000

7,000

8,000

9,000

Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 1Q16

Interest-bearing Debt to Equity

TO

TA

L IN

ER

ES

T-B

EA

RIN

G D

EB

T (

MB

)


4 Q & A

3 Outlook

Agenda

1 Industry Update



International Tourist Arrivals

11.6

13.8 14.5 14.6 14.1 15.7

19.1

22.3

26.5 24.8

29.9

32.0

0

5

10

15

20

25

30

35

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016F

Million

TSUNAMI Coup Protest Protest Protest Protest


Proven Resilience to Challenges

Protest

7%


2016 Outlook

No. of Rooms

Increase from 5,676

rooms to 6,310 rooms

+634 rooms

Hotel Revenue

15%

OCC +6% from 2015

ARR +3-7% from 2015

F&B +14% from 2015

+634 rooms (Increase from 5,676 rooms to

6,310 rooms)

No. of Rooms

+7% from 2015 OCC

+3-7% from 2015 ARR

+14% from 2015 F&B


HOP INN #16 Roiet 79 rooms Opened in Jan 16

HOP INN #17 Chumphon 79 rooms Opened in Mar 16

HOP INN #18 Chanthaburi 75 rooms Opened in April 16

HOP INN #19 Sakonnakhon 75 rooms Target Opening : 2Q16 On Schedule

HOP INN #20 Chiangmai 75 rooms Target Opening : 3Q16 On Schedule

HOP INN #21 Hatyai 79 rooms Target Opening : 4Q16 On Schedule

1 HOP INN Philippines 168 rooms Target Opening : 4Q16 On Schedule

Hotel Growth Strategy

Developing Hotels Proceeding as Plan


Hotel Growth Strategies

95 Hotels by 2020 in Thailand and ASEAN


Strong Financial Support

Cash flow

from

Operation

Debt

Financing

Project

Finance

Bond

Approved

New Loan

3,500 MB


Luxury

Midscale

Economy

HOP INN

Forward-looking statement based on company operating and investment assumptions

Luxury

Midscale

Economy

HOP INN

100%

2004

100%

Before

Master Plan

70%

15%

15%

2010

64% 18%

18%

Phase I

55% 24%

19%

2%

2015

47%

29%

21%

3%

Phase II

2020

42%

24%

18%

16%

35%

24%

18%

23%

Phase III

Projected Revenue and EBITDA by Segment

Revenue by

Segment

EBITDA by

Segment


Bangkok

ASEAN

Forward-looking statement based on company operating and investment assumptions

Non Bangkok

Bangkok

ASEAN

Non Bangkok

2004

100%

100%

Before

Master Plan

2010

73%

27%

84%

16%

Phase I

2015

65%

35%

0%

67%

33%

Phase II

2020

55% 35%

10%

50% 37%

13%

Phase III

Projected Revenue and EBITDA by Destination

Revenue by

Destination

EBITDA by

Destination

Appendix

1Q16 Review


Operating Income

1Q16

Segment Contribution Y-Y

Luxury 51% 2%

Midscale 24% 8%

Economy 20% 8%

Budget 2% 135%

Rental 3% 4%

Total Group 6%

1Q16

Destination Contribution Y-Y

BKK 62% 2%

Pattaya 16% 6%

Phuket 10% 16%

Other 12% 21%

Total Group 6%


EBITDA

1Q16

Segment Contribution Y-Y

Luxury 43% 1%

Midscale 26% 12%

Economy 23% 15%

Budget 3% 189%

Rental 4% 2%

Total Group 9%

1Q16

Destination Contribution Y-Y

BKK 58% 1%

Pattaya 19% 10%

Phuket 10% 53%

Others 13% 30%

Total Group 9%

Note : • For illustration purpose only. • EBITDA by Segment is calculated without taking non-property-specific expenses into account.


Success with Integrity

quarterly meeting # 2/2016 - the erawan group · 1q16 weight 1q16 y-y 1q16 3y/cagr china 26% 29%...

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