IR Booklet 2Q19&1H19

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IR Booklet 2Q19&1H19 SPA 2Q19& 1H19 SUMMARY Disclaimer: The information contained in this presentation is for information purposes only and does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for share in Siam Wellness Group Public Company Limited (“SPA” and shares in SPA, “shares”) in any jurisdiction nor should it or any part of it form the basis of, or be relied upon in any connection with, any contract or commitment whatsoever. This presentation may include information which is forward-looking in nature. Forward-looking information involve known and unknown risks, uncertainties and other factors which may impact on the actual outcomes, including economic conditions in the markets in which SPA operates and general achievement of SPA business forecasts, which will cause the actual results, performance or achievements of SPA to differ, perhaps materially, from the results, performance or achievements expressed or implied in this presentation. This presentation has been prepared by the SPA. The information in this presentation has not been independently verified. No representation, warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information and opinions in this presentation. None of the SPA or any of its agents or advisers, or any of their respective affiliates, advisers or representatives, shall have any liability (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. This presentation is made, furnished and distributed for information purposes only. No part of this presentation shall be relied upon directly or indirectly for any investment decision-making or for any other purposes. This presentation and all other information, materials or documents provided in connection therewith, shall not, either in whole or in part, be reproduced, redistributed or made available to any other person, save in strict compliance with all applicable laws. 2 Agenda 1. Company Overview 2. Company Performance 3. Future Outlook 3 Executive Summary 2Q19 Revenue grows +26% Y-Y and 2Q19 Strong demand from foreign & domestic Net profit falls 2% Y-Y, whereas 1H19 Reve- customer with average 1H19 Utilitization Rate nue grows +24.6% Y-Y and 1H19 Net Profit of 81% despite some ongoing tourism news. grows +2.0% Q-Q. Key Development: Future: • 1H19, 5 new domestic branches opened 4 Growth Pillars • Chaba Nails & Spa recognized revenue • Organic Growth from Jan 1, 2019 • Spa Operating in Hotel • Spa Products • 3 new Spa Operating in Hotel Signing • Spa Expansion Overseas. 4 Company Overview 5 SPA is the first full-scale spa company to listed on mai with the most comprehensive services and most number of branches. Spa SWR (hotel & food) SWL Other Wellness Services (spa products) Onsen Stretch Me SWE (massage school) Face care Chaba 6 Total 60 Branches (as of 30 Jun 2019) 5-Stars Spa 4-Stars Spa 3-Stars Spa Innovative Wellness Spa Boutique Day Spa Neighborhood Massage & Spa Avg. Spend = 2,100 THB/pax Avg. Spend = 1,050 THB/pax Avg. Spend = 500 THB/pax CAPEX 25 million THB/branch CAPEX 15-20 million THB/branch CAPEX 10million THB/branch 3 Branches Thailand 35 Branches Thailand 10 Branches Thailand 7 Branches Overseas 7 Stretching Studio Sophisticated Manicure by Physical Therapists FACIAL SPA Pedicure & Eyelashes Avg. Spend = 1,200 THB/pax Avg. Spend = 1,200 THB/pax Avg. Spend = 1,000 THB/pax CAPEX 5-7 million THB/branch CAPEX 5-7 million THB/branch CAPEX 5-7 million THB/branch 4 Branches Thailand 1 Branch Thailand 9 Branches Thailand* *Company holds 76% shares in Chaba Elegance Co., Ltd. 8 QINGDAO QINGDAO 2 SPA’s branches are located in most strategic locations 57 60 55 3 3 50 3 5 45 4 41 42 3 3 31 3 3 3 3 21 3 36 39 40 42 31 28 27 12 19 10 2 14 8 6 2 4 5 2 10 2 1 2 1 8 11 11 11 11 10 10 10 6 8 4 4 4 4 1 2 1998 2003 2004 2006 2008 2011 2013 2014 2015 2016 2017 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 BRANDS BANGKOK UPCOUNTRY OVERSEAS RarinJinda 2 1 Let’s Relax 17 18 7 Baan Suan 7 3 Other 4 1 Total 30 23 7 9 Company Performance Tourist Arrivals to Thailand Tourist Arrivals in 1H19 grows 1.48% YoY China 5.7 m (-5%) | Hong Kong 0.5 m (+6%) | Taiwan 0.4 m (+14%) | Korea 0.91 m (+3%) | Japan 0.86 m (+11%) | Asean 5.0 m (+5.4%) 40 38.28 35.59 35 9.79 32.6 4Q18 29.8 30 26.5 24.8 25 9.01 22.3 3Q18 19.77 20 19.1 15.9 14.5 14.6 8.85 8.97 15 13.8 14.1 2Q18 2Q18 11.6 10 10.63 10.8 5 1Q18 1Q18 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Coup Airport H1N1 Flood Political Coup Bomb King’s Sink Closure Spread Protest Death Ship Zero-Tours Attack Source: Department of Tourism, Ministry of Tourism and Sports. Crackdown Tourist 11 New Domestic Branches Nikko Hotel ibis Styles Bangkok Ratchada Nikko Hotel 12 Chaba Siam Square soi 2 Siam Square One Central Westgate Central East Ville Central Plaza Pinklao Gaysorn Village Iconsiam Sukhumvit 39 Nikko Hotel Thonglor 13 Spa’s Strong Operational Performance SPA Customer 1H19 SPA Revenue SPA Revenue by Nationality by Business 2Q19 by Brand 2Q19 % 2% 2% Asian3 M.East Other 5% Western 5% Products 10% 83% Korean | Jap 3% Hotel& Let’s Relax % Food 55China | HK | Taiwan 91% % Spa & 5% 25Thai | Ex-pat RarinJinda Wellness 5% 5% BaanSuan Chaba SPA Customer 2% Source 1H19 Other SPA Staff Utilization Rate % 90% 10Agent 81% % 70% 30Online Booking Average 2Q19 Staff Utilization Rate is 81% 50% 30% % Assumption: 60Walk-in and Staff works 8 hours a day / Phone Booking 6 days a week 10% 12M2013 12M2014 12M2015 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018 3Q2018 4Q2018 1Q2019 2Q2019 source: Company’s Estimate 14 Solid Total Revenue Growth 2Q19 GROWS 26.4% YOY AND 1H19 grows 24.6% YoY 687.82 MB. 1,152.49 MB. 350 345.10 342.74 309.37 291.04 300 280.84 962.39 MB (THB millions) 271.24 275 259.06 250 246.74 227.37 229.22 225 739.12 MB 200 195.24 193.53 176.02 174.33 175 150 125 100 75 50 25 0 Q1’16 Q2’16 Q3’16 Q4’16 Q1’17 Q2’17 Q3’17 Q4’17 Q1’18 Q2’18 Q3’18 Q4’18 Q1’19 Q2’19 15 Good Gross Profit Growth 2q19 Gross Profit Margin Is 29.0%, Slighty Drop Due to Provision for Long-term Employment Benefit and add-on bonus paid. 250 37.0% 37.5% 34.0% 34.0% 33.7% 36.1% 35.1% 33.6% 33.6% 32.3% 200 30.8% 29.0% (THB millions) 31.8% 29.8% 150 207.80 328.09 384.12 110.04 104.71 97.07 97.76 83.55 89.00 93.34 100 75.87 82.70 85.97 240.51 67.56 61.81 54.39 56.75 50 Q1’16 Q2’16 Q3’16 Q4’16 Q1’17 Q2’17 Q3’17 Q4’17 Q1’18 Q2’18 Q3’18 Q4’18 Q1’19Q2’19 16 Good Net Profit Growth 2Q19 Falls -2.2% YoY AND 1H19 Grows +2.0% YoY 21.0% 120 18.1% 18.2% 18.1% 17.9% 20.1% 18.3% 18.1% 16.2% 17.4% 20.6% 20.0% 14.0% 100 17.9% 80 205.60 MB 59.20 60 175.17 MB 106.60 MB 140.97 MB 56.15 45.15 51.96 40.33 44.09 45.60 48.38 49.11 47.35 40.39 40 35.24 34.67 30.66 20 Q1’16 Q2’16 Q3’16 Q4’16 Q1’17 Q2’17 Q3’17 Q4’17 Q1’18 Q2’18 Q3’18 Q4’18 Q1’19 Q2’19 *Q2’19 has employment benefit cost approx 2 million THB, Franchise Recognition system has changed, add-on Bonus (one-time expense) and temporary closure of Let’s Relax Pattaya North for renovation (1month). 17 TSS - SSG/Expansion, Brand, Location Classification SSG(+6.5%) SSG Expansion Expansion(+16%) SPA New Project (+1.7%) (+22.5%) Let’s Relax (+22%) TSS SWR Brand RarinJinda (-%) YoY+26% (-1%) (3mths) Baan Suan (-%) Chaba New Project (+1.7%) (+5.5%) Location BKK (+15%) Other (-1%) UPC (+8.7%) Franchise Franchise (-1.7%) Key: BKK - Bangkok Branches | UPC - Upcountry Branches 18 TSS - SSG/Expansion, Brand, Location Classification SSG(+0.3%) SSG SPA Expansion Expansion(+1.0%) (+1.3%) Let’s Relax (+0.8%) Brand SWR RarinJinda (-1%) TSS (-2%) QoQ-0.7% Baan Suan (+0.5%) (3mths) New Project (+0.4%) Chaba (-%) Location BKK (+5.0%) UPC (-4.3%) Other (-%) Key: BKK - Bangkok Branches | UPC - Upcountry Branches 19 Key Financial Ratio D/E Ratio Remains Strong 4.00 3.37 D/E Ratio Liquidity Ratio 3.00 3.07 2.44 2.00 1.51 1.44 1.22 1.23 1.0 0.98 0.97 0.73 0.93 0.86 0.75 0.78 0.81 1.00 0.62 0.62 0.34 0.25 0.23 0.19 0.19 0.16 0.18 0.60 0.56 0.59 0.59 0.35 0.39 0.42 0.47 0.43 0.41 0.49 3M2017 6M2017 9M2017 3M2018 6M2018 9M2018 3M2019 6M2019 9M2016 3M2015 6M2015 9M2015 3M2016 6M2016 12M2016 12M2017 12M2018 12M2015 Remark : Adjusted after Dividend and Chaba Pending Payment 20 Key Financial Ratio ROE RoA 30% 25.7% 24.9% 25.1% 26.1% 25.5% 23.9% 23.6% 24.4% 22.6% 21.6% 20.52% 24.8% 25% 25.6% 23.0% 23.8% 18.55% 19% 22% 17.4% 20% 17.2% 17% 19% 14.8% 18.1% 19% 18.8% 17% 18.1% 17.7% 14.8% 15.1% 16.9% 16.2% 15% 10% 10.7% 3M2015 6M2015 9M2015 3M2016 6M2016 9M2016 3M2017 6M2017 9M2017 3M2018 6M2018 9M2018 3M2019 6M2019 12M2015 12M2016 12M2017 12M2018 21 Dividend History Financial Payment Dividend Total Eps per Share Dividend Payout Year Date (Thb/Share) Payout Consolid/Separate Ratio Consolid/Separate 2014 30/04/15 0.025 14.25M 0.08 0.05 31% 50% Annual 2015 25/12/15 0.05 28.50M Interim 2015 24/04/16 0.05 28.50M Annual 2015 0.1 57M 0.19 0.16 53% 63% Total 2016 20/10/16 0.05 28.50M interim 2016 28/04/17 0.05 28.50M Annual 2016 0.1 57M 0.25 0.21 40% 47.6% Total 2017 08/09/17 0.05 28.50 M Interim 2017 25/04/18 0.07 39.9 M Annual 2017 0.12 68.4 M 0.31 0.28 39% 43% Total 2018 26/04/19 0.15 85.5 M 0.36 0.36 42% 42% Annual 22 OUTLOOK Growth pillars of Spa Organic Growth Spa Operating Spa Products Overseas Branch For Hotels & (Retail & Branch Expansion Resorts Hotels) Expansion 24 Total No.
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