MinorMinor InternationalInternational PCLPCL
Investor / Analyst Presentation Four Seasons Hotel Bangkok 27th February 2006 ForwardForward LookingLooking StatementsStatements
Statements included or incorporated in these materials that use the words "believe", "anticipate", "estimate", "target", or "hope", or that otherwise relate to objectives, strategies, plans, intentions, beliefs or expectations or that have been constructed as statements as to future performance or events, are "forward-looking statements" within the meaning are not guarantees of future performance and involve risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated at the time the forward-looking statements are made, including without limitation, risks and uncertainties associated with the following: the continued ability of Minor International Public Company Limited (“Mint”) to attract and retain personnel; identification, completion, terms and timing of future acquisitions and dispositions; the availability and terms of capital for acquisitions and for renovations; execution of hotel renovation and expansion programs; the ability to maintain existing management, franchise or representation agreements and to obtain new agreements on favorable terms; competition within the lodging and leisure industry; the cyclicality of the real estate business and the hotel and leisure business; foreign exchange fluctuations and exchange control restrictions; general real estate and national and international economic conditions; political and financial conditions and uncertainties in countries in which Mint owns or operates properties; changes in current laws, rules or regulations of governmental or other regulatory bodies; and other risks and uncertainties set forth in the annual, quarterly and current reports and proxy statements of Mint filed with the Securities and Exchange Commission (the "SEC"). Mint undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Mint makes no representation whatsoever about the opinion or statements of any analyst or other third party. Mint does not monitor or control the content of third party opinions or statements and does not endorse or accept any responsibility for the content or the use of any such opinion or statement TheThe StrengthsStrengths BehindBehind TheThe BrandsBrands
Today’s Presenters: William E. Heinecke, Chairman & CEO Paul C. Kenny, CEO-Minor Food Group Pratana Manomaiphiboon, CFO The Strength Behind The Brands AgendaAgenda
MINT’s Recent Development 2005 Financial Results Food Business & Strategy Hospitality Business & Strategy Expansion Plan & Cash Flow Q&A
Investor / Analyst Presentation 27 February 2006 Page 4 MintMint’’ss RecentRecent DevelopmentDevelopment 20052005 FinancialFinancial ResultsResults
Pratana Manomaiphiboon, CFO The Strength Behind The Brands MINTMINT’’ss RecentRecent DevelopmentDevelopment
Food Continued food outlets expansion in China with 5 The Pizza and 4 Sizzler new outlets opening Acquired 100% investment of China food business from AIG of Bt30 million
Hotel Opened Bodu Huraa Hotel – Maldives, and Four Seasons Golden Triangle (Tented Camp) Secured six management contracts of hotels in Dubai, Maldives, and Bali Completed construction of Phuket Beach Club (Marriott Vacation Villa or Timeshare) Phase II Acquired 67 rai plot of land in Phuket for new luxury hotel and Timeshare phase III
Investor / Analyst Presentation 27 February 2006 Page 6 The Strength Behind The Brands MINTMINT’’ss RecentRecent DevelopmentDevelopment
Corporate Appointment the new COO of MSpa (Thailand) – Mr. Steven Conquy Appointment the new COO of hotel business – Mr. Michael Sagild Awarded by Forbes Magazine as one of Asia’s Best Under A Billion Joined SET-100 starting January 2006 Completed 1 for 15 Rights Offering @Bt5.85
Investor / Analyst Presentation 27 February 2006 Page 7 The Strength Behind The Brands 20052005 FinancialsFinancials SnapshotSnapshot
Top-line revenue grew 27% y-y to Bt10,443m Food & hotel business accounting for 49% and 42%, respectively EBITDA margin improved to 28% Bottom-line EPS increased 41% y-y to Bt0.41/share
Investor / Analyst Presentation 27 February 2006 Page 8 The Strength Behind The Brands MINTMINT’’ss 20052005 RevenueRevenue BreakdownBreakdown
(Bt Million) 12,000 10,443
Growth 27% Other income 10,000 8,237 Entertainment 8,000 42% Spa Business 34% 6,000 Retail Property 4,000 Hotel Services 56% 49% 2,000 44% 36% 40% 46% Food Services 48% 55% 51% 44% 0 2004 1Q05 2Q05 3Q05 4Q05 2005
Investor / Analyst Presentation 27 February 2006 Page 9 The Strength Behind The Brands
FoodFood6,000 BusinessBusiness PerformancePerformance
Revenue (Bt Million) R 5,588 5,000 CAG 20% 4,885 Franchising Fee 4,000 3,904 3,500 3,000 3,082
2,000
1,000 Owned Equity
0 2001 2002 2003 2004 2005
Investor / Analyst Presentation 27 February 2006 Page 10 The Strength Behind The Brands 20052005 SameSame--StoreStore--SalesSales 2005 SSS Growth
TheThe PizzaPizza CompanyCompany 6% 6%
Swensen’sSwensen’s 9% 9%
SizzlerSizzler 4% 4%
DairyDairy QueenQueen 2% 2%
BurgerBurger KingKing 11% 11%
AverageAverage 6% 6%
Investor / Analyst Presentation 27 February 2006 Page 11 The Strength Behind The Brands 20052005 TotalTotal--SystemSystem--SalesSales 2005 TSS Growth
TheThe PizzaPizza CompanyCompany 11% 11%
Swensen’sSwensen’s 27% 27%
SizzlerSizzler 12% 12%
DairyDairy QueenQueen 10% 10%
BurgerBurger KingKing 3% 3%
AverageAverage 14% 14%
Investor / Analyst Presentation 27 February 2006 Page 12 The Strength Behind The Brands
20052005180 FranchisingFranchising RevenuesRevenues
160 (Bt Million) 156 140 th 26% Grow 120 124 80
100 International 69 Franchising Fee 80
60 57 40 76 Local 55 8 20 9 6 Franchising Fee 19 20 21 17 0 2004 1Q05 2Q05 3Q05 4Q05 2005 Note: 3Q05 franchising revenues mainly from territory fee from Saudi Arabia Investor / Analyst Presentation 27 February 2006 Page 13 The Strength Behind The Brands 20052005 HotelHotel BusinessBusiness PerformancePerformance
Revenue (Bt Million)
R CAG 19% 4,357 3,841
3,096 3,136 2,487
2001 2002 2003 2004 2005 Investor / Analyst Presentation 27 February 2006 Page 14 The Strength Behind The Brands 20052005 OccupancyOccupancy RateRate && ADRADR
Occupancy Avg. Room Rate(Bt/night) Hotel 2005 2004 2005 2004 %Chg
Bangkok Marriott Resort & Spa 86% 83% 3,444 2,951 17%
Pattaya Marriott Resort & Spa 80% 74% 3,101 2,798 11% Hua Hin Marriott Resort & Spa 81% 72% 3,194 3,065 4%
JW Marriott Phuket 67% 77% 5,561 4,727 18%
Anantara Resort & Spa Hua Hin 76% 61% 3,814 3,669 4%
Anantara Resort & Spa Golden Triangle 40% 35% 4,756 4,173 14% Anantara Resort & Spa Koh Samui 46% n/a 5,639 n/a n/a
Four Seasons Resort Chiang Mai 59% 60% 12,115 11,008 10%
Four Seasons Hotel Bangkok 63% 71% 5,665 5,139 10%
Average 72% 71% 4,380 3,984 10%
Investor / Analyst Presentation 27 February 2006 Page 15 The Strength Behind The Brands 20052005 RevParRevPar && TotalTotal RevenueRevenue
Rev Par (Bt) Total Revenue (Btm) Hotel 2005 2004 % Chg 2005 2004 %Chg
Bangkok Marriott Resort & Spa 2,974 2,433 22% 950 802 19% Pattaya Marriott Resort & Spa 2,492 2,079 20% 438 391 12%
Hua Hin Marriott Resort & Spa 2,579 2,218 16% 325 278 17% JW Marrilott Phuket Resort & Spa 3,742 3,621 3% 720 711 1% Anantara Resort & Spa Hua Hin 2,901 2,238 30% 311 244 27%
Anantara Resort & Spa Golden Triangle 1,915 1,460 31% 119 105 14% Anantara Resort & Spa Samui 2,577 n/a n/a 157 9 n/a Four Seasons Resort Chiang Mai 7,150 6,570 9% 385 354 9% Four Seasons Hotel Bangkok 3,590 3,664 -2% 952 947 1%
Average 3,161 2,837 11% 4,357 3,841 13%
Investor / Analyst Presentation 27 February 2006 Page 16 The Strength Behind The Brands RetailRetail PropertiesProperties && EntertainmentEntertainment
(Bt Million)
th 500 25% Grow Entertainment 88 400 52
300 =
200 389Retail Property 331 21 24 21 100 22 91 104 95 99 0 2004 1Q05 2Q05 3Q05 4Q05 2005
Investor / Analyst Presentation 27 February 2006 Page 17 The Strength Behind The Brands SpaSpa BusinessBusiness PerformancePerformance 400 (Bt Million)
GR CA 74% 316 300 297 56 41 International
197 200 4
148
256 260 Local 100 80 193 148 80
0 2001 2002 2003 2004 2005
Investor / Analyst Presentation 27 February 2006 Page 18 The Strength Behind The Brands MINTMINT’’ss ConsolidatedConsolidated PerformancePerformance 12,000 Sales Revenue (Bt Million) 10,443 10,000 GR CA 101% 8,237 8,000
6,000
4,662 4,000
2,749 2,000 2,077
0 2001 2002 2003 2004 2005
Investor / Analyst Presentation 27 February 2006 Page 19 The Strength Behind The Brands 20052005 ConsolidatedConsolidated PerformancePerformance
(Bt Million) 2005 % 2004 % % Growth Food Services 5,155 49% 4,645 56% 11% Hotel Services 4,388 42% 2,820 34% 56% Retail Property 389 4% 331 4% 18% Spa 326 3% 298 4% 9% Entertainment 88 1% 52 1% 67% Other income 97 1% 91 1% Total Revenue 10,443 100% 8,237 100% 27% Operating Expenses 3,342 32% 2,725 33% SG&A Expenses 4,188 40% 3,379 41% EBITDA 2,913 28% 2,133 26% 37% Depreciation & Amortization 1,153 11% 919 11% EBIT 1,760 17% 1,214 15% 45% Interest Expenses 280 3% 218 3% Tax & Minority 419 4% 284 4% Investor / Analyst Presentation Net Profit 1,061 10% 712 9% 49% 27 February 2006 Page 20 The Strength Behind The Brands 20052005 BreakdownBreakdown PerformancePerformance
(Bt Million) 2005 EBITDA Contribution Food Services 5,155 Hotel Services 4,388 Retail Property 389 Hotel Spa 326 53% Retail Property 9% Entertainment 88
Other income 97 Spa 4%
Total Revenue 10,443 Food Services Entertainment Operating Expenses 3,342 32% 2% SG&A Expenses 4,188 EBITDA 2,913 Depreciation & Amortization 1,153 Net Profit Contribution EBIT 1,760 Food Services 322 30% Interest Expenses 280 Hospitality & Leisure 739 70% Tax & Minority 419 Consolidated Net Profit 1,061 NetInvestor Profit / Analyst Presentation 1,061 27 February 2006 Page 21 The Strength Behind The Brands ProfitabilityProfitability RatioRatio Net Profit EPS
Net Profit Net Profit Margin 0.45 1,200 14% 0.41 13% 0.40 12% 12% 1,000 11% 0.35 10% 10% 10% 0.29 800 0.30 9% 8% 8% 8% 0.25 600 6% 6% 0.20 5% 0.15 400 0.15 4% 0.12 0.12
0.10 0.09 200 0.07 2% 0.05 0.06 0.05 0.03 0 0% 4 0.00 Q0 Q04 Q05 1Q04 1Q05 2Q04 2Q05 3 3Q05 4 4 2004 2005 Q04 Q05 1 1 Q04 Q05 2 2 Q05 4 3Q04 3 Q05 0 5 4Q04 4 0 00 Investor / Analyst Presentation (Bt Million) (Bt/share)2 2 27 February 2006 Page 22 The Strength Behind The Brands EfficiencyEfficiency RatioRatio Return on Assets Return on Equity 8%8% 16,00016,000 7.2%7.2% 7.3%7.3% 7.0%7.0% 20.1% 6.6% 15,500 6.6% 6,000 20.3% 25% 15,500 18.1% 19.8% 5.9%5.9% 6%6% 16.2% 5,000 15,00015,000 20%
4,000 14,50014,500 4%4% 15% 3,000 14,00014,000
10% 2,000 13,50013,500 2%2% 5% 1,000 13,00013,000
0%0% 0 0% 12,50012,500 4Q044Q04 1Q05 1Q05 2Q05 2Q05 3Q05 3Q05 4Q05 4Q05 4Q04 1Q05 2Q05 3Q05 4Q05 TotalTotal AssetsAssets AdjustedAdjusted ReturnReturn onon AssetsAssets Total Parent's Shareholders' EquityAdjusted Return on Equity
Note: Calculations based on annualized figures Investor / Analyst Presentation Return on Assets = Profit Before Minorities / Total Assets (Bt Million) 27 February 2006 Return on Equity = Net Profit / Total Parents’ Shareholders’ Equity Page 23 The Strength Behind The Brands DEDE RatioRatio
(Bt Million) 1.31 18,000 1.31 1.4 1.13 1.23 1.21 16,000 1.2 14,000 1.0 12,000 10,000 0.8
8,000 0.6 6,000 0.4 4,000 0.2 2,000 Assets 14,721 MB Assets 13,960 MB Assets 15,445 MB Assets 13,964 MB 0 Assets 14,099 MB 0.0 4Q04 1Q05 2Q05 3Q05 4Q05
Equity Interest Bearing Debt Other Liabilities Interest Bearing Debt-to-Equity (RHS)
Investor / Analyst Presentation Note: Debt to Equity Ratio = Interest Bearing Debt / Total Equity 27 February 2006 Page 24 The Strength Behind The Brands InterestInterest CoverageCoverage RatioRatio 10.42 1,000 12.0 (Bt Million) 10.21 10.42 10.38 9.77 10.0 800
8.0 600
6.0
400 4.0
200 2.0
0 EBITDA Interest Expense Interest Coverage Ratio (RHS)0.0
Investor / Analyst4Q04 Presentation 1Q05 2Q05 3Q05 4Q05 Note: Interest Coverage Ration = EBITDA / I (Annualized basis) 27 February 2006 Page 25 MINTMINT’’ss FoodFood BusinessBusiness
PaulPaul CC Kenny,Kenny, CEOCEO –– MinorMinor FoodFood GroupGroup The Strength Behind The Brands ThailandThailand’’ss QSRQSR inin 20052005
Thailand’s food service sector grew 10% despite declining GDP growth in 2005 With high oil prices and declining consumer confidence, consumers are more price / value sensitive Food industry has had to respond to softening demand Light food categories ie ice cream, coffee, and donuts enjoyed strong growth Pizza holds 20% market share behind chicken Investor / Analyst Presentation 27 February 2006 Page 27 The Strength Behind The Brands ThaiThai QSRQSR TotalTotal SystemSystem SalesSales
2003: Bt15,012bn 2005F: Bt18,993bn
Other 19% Other Chicken 21% Chicken 37% 33% Ice Cream 11% Ice Cream 12% Pizza Pizza 18% Hamburger Hamburger 15% 20% 14%
MINT’s MKT Share 27% MINT’s MKT Share 31%
Source: Ministry of Commerce and MFG Investor / Analyst Presentation 27 February 2006 Page 28 The Strength Behind The Brands MINTMINT’’ss RenownedRenowned BrandsBrands
Brand Outlets Key Strength Position
Multi-operation Owned Brand 166 Leader system Exclusive rights to most countries Premium ice cream in Asia and Middle East and can 142 Leader flavored to Thai sub-franchise
Exclusive rights for Thailand and Pioneer of casual 31 Leader China and can sub-franchise dinning
Exclusive rights for Thailand and The first soft serve 176 Leader can sub-franchise operator in Thailand
Sole Operator for Thailand 16 The best of its league No. 2
The largest airport Restaurant operators at airports 27 Leader restaurant operator Total 558 Note Number of outlets includes both equity outlets and franchisees in Thailand and Internationally Investor / Analyst Presentation 27 February 2006 Page 29 The Strength Behind The Brands MINTMINT’’ss QSRQSR MarketMarket ShareShare
In 2005, MINT’s total system sales (TSS) grew 14% to Bt 5.9 bn in sales The sales currently accounted for 31% of the QSR’s market, up from 27% share in 2003 In 2006, MINT’s total system sales target to grow more than 20% driven by new products, and outlet expansion Investor / Analyst Presentation 27 February 2006 Page 30 The Strength Behind The Brands ThaiThai QSRQSR MarketMarket TrendTrend
Forecast growth remains solid for overall consumer foodservice market Continued growth for ethnic QSR ie Suki chains, hot pot stores, and Japanese restaurants Product innovation and value becoming more critical to consumers Challenges to industry players as some consumers shift to higher quality while others become more price sensitive Market total system growth estimate at 8-10% in 2006
Investor / Analyst Presentation 27 February 2006 Page 31 The Strength Behind The Brands MINTMINT’’ss FoodFood BusinessBusiness ModelModel
Strong Base in Thailand 473 equity owned and 57 franchised outlets in Thailand – expand with high comp growth and additional outlets Expanding to New International Markets 36 outlets outside of Thailand and this will increase – most will be franchised Leveraging Strong Brands Pizza Company, Swensen’s Sizzler
Investor / Analyst Presentation 27 February 2006 Page 32 The Strength Behind The Brands MintMint’’ss FoodFood OutletsOutlets inin 20052005
1Q05 2Q05 3Q05 4Q05 2005 2006F 2007F 2008F Owned Equity TPC -Thailand 117 117 120 122 122 126 137 148 TPC - China 1 2 5 5 5 12 22 32 SW 100 103 104 105 105 109 114 117 SZ - Thailand 25 26 27 27 27 31 35 39 SZ - China 2 3 4 4 4 8 11 14 DQ 163 168 172 176 176 176 181 186 BK 16 15 16 16 16 17 20 23 Lejazz 7 6 5 8 8 17 22 26 Others 19 19 19 19 19 19 19 19 Total Owned Equity 450 459 472 482 482 515 561 604 Franchises TPC - Local 21 25 25 28 28 42 51 59 TPC - International 4 7 9 11 11 39 82 137 SW - Local 13 20 22 29 29 47 57 67 SW - International 5 5 6 8 8 18 32 56 SZ - International 5 12 Lejazz 2 2 2 Investor / AnalystTotal Presentation Franchises 43 57 62 76 76 148 229 333 27 February 2006 Page 33 Total Outlets 493 516 534 558 558 663 790 937 The Strength Behind The Brands KeyKey GrowthGrowth FrameworkFramework inin 20062006
Total system food outlets target to expand to 663 outlets with the additional 45 in Thailand and 60 internationally About 70% of 105 new outlets in 2006 will be The Pzza Company and Swensen’s franchises Expect continued franchising in Thailand but significant growth to come from China and the Middle East
Investor / Analyst Presentation 27 February 2006 Page 34 The Strength Behind The Brands KeyKey ConsiderationsConsiderations
Domestically, we have to focus on providing value for money and to drive increasing customer count Expanding in multiple international markets requires: - Finding the right people - Preserving corporate culture - Developing necessary controls and systems
Investor / Analyst Presentation 27 February 2006 Page 35 The Strength Behind The Brands InternationalInternational FranchisingFranchising StrategyStrategy
Franchising The Pizza Company (our own brand) globally Establish The Pizza Company and Sizzler in Beijing with equity owned outlets and then franchise to other parts of China Franchise The Pizza Company, Swensen’s and Sizzler in SE Asian and Middle Eastern markets Partner with franchisees that are highly capable with food service experience and the financial resources to support our brands
Investor / Analyst Presentation 27 February 2006 Page 36 The Strength Behind The Brands TotalTotal SystemSystem SalesSales OutlookOutlook
Revenue (Bt Million) Strong growth 10,000 with higher contribution R 9,000 CAG from 23% 8,000 franchising 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 2004 2005 2006F 2007F 2008F
Investor / Analyst Presentation 27 February 2006 Page 37 The Strength Behind The Brands TheThe PizzaPizza –– ChinaChina
Simultaneous multi-market development Equity within Beijing / Franchise outside Beijing Number 2 pizza brand in China by 2007
Investor / Analyst Presentation 27 February 2006 Page 38 The Strength Behind The Brands SizzlerSizzler –– ChinaChina
Major market strategic development Equity / franchise geographically match The Pizza The preferred casual dining food concept in China
Investor / Analyst Presentation 27 February 2006 Page 39 The Strength Behind The Brands TheThe PizzaPizza –– MiddleMiddle EastEast
Franchising of The Pizza in the Middle East countries started for more than two years Increased outlets with higher number of franchisees
Investor / Analyst Presentation 27 February 2006 Page 40 The Strength Behind The Brands SwensenSwensen’’ss –– MiddleMiddle EastEast
Franchising of Swensen’s brand initiated in the Middle East countries Currently, MINT can sub-franchise the brand in 33 countries in Asia include India
Investor / Analyst Presentation 27 February 2006 Page 41 MINTMINT’’ss HotelHotel BusinessBusiness GrowthGrowth StrategyStrategy
WilliamWilliam E.E. Heinecke,Heinecke, ChairmanChairman && CEOCEO The Strength Behind The Brands ThaiThai TourismTourism SentimentsSentiments
Thai tourism proved resilient with 3% growth y-y in tourists arrival numbers in 2005 according to TAT The healthy balance of tourism industry retained with a strong growth of 11% on tourists spending Decline in Phuket tourism positively impacted other Thai destinations ie Hua Hin, Pattaya, Samui, and Chiang Mai In 2006, Thai tourism will strongly recover with more routes offered by low cost airlines, opening of the new airport, and government’s continued efforts to aggressively promote tourism
Investor / Analyst Presentation 27 February 2006 Page 43 The Strength Behind The Brands InternationalInternational TouristTourist ArrivalsArrivals
(Million) Bt billion
No. of Tourists Income 14 600
12 500 10 400 8 300 6 200 4 2 100 0 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005* 2006**
Source : Tourism Authority of Thailand, January 2006 * Projection as November 2005, ** Target
Investor / Analyst Presentation 27 February 2006 Page 44 The Strength Behind The Brands TouristsTourists ArrivalArrival && SpendingSpending Number % Chg Spending/day Total Revenue % Change (million) (Bt) (Btm)
2000 9.51 10.8 3,861 285,272 12.8
2001 10.06 5.8 3,948 299,047 4.8
2002 10.80 7.3 3,754 323,484 8.2
2003 10.00 (7.6) 3,774 309,269 (4.4)
2004 11.65 16.5 4,058 384,360 24.3
2005* 12.00 3.0 4,150 425,000 10.6
2006** 13.20 10.0 4,300 500,000 17.6
Note: * Projection as November 2005; ** Target
Investor / Analyst Presentation 27 February 2006 Page 45 The Strength Behind The Brands MINTMINT’’ss HotelHotel BusinessBusiness ModelModel
Target “Four Star, Five Star, and above” segment Maintain base in Thailand while expanding internationally Develop our “Anantara” brand Expand through hotel management contracts – Asset Light strategy Continue expansion of new hotel to tap high growth opportunity
Investor / Analyst Presentation 27 February 2006 Page 46 The Strength Behind The Brands MINTMINT’’ss RenownedRenowned HotelHotel BrandsBrands
Owner Manager MINT Four Seasons (3 hotels) MINT Marriott (1 hotel) MINT MINT (3 hotels) MINT & JV MINT (3 hotels) MINT & Marriott Marriott (2 properties) Investor / Analyst Presentation 27 February 2006 Page 47 The Strength Behind The Brands HotelHotel ExpansionExpansion StrategyStrategy
Phase I: Open new hotel properties under owned equity & joint venture Phase II: Expand more hotel management contracts while continue investing equity to build new hotels Phase III: Acquire & develop new brands
12 properties Phase 1 17 properties Phase 2 20 properties + Phase 3
Jan 2006 Jan 2007 Jan 2008
Investor / Analyst Presentation 27 February 2006 Page 48 The Strength Behind The Brands HotelHotel ExpansionExpansion PipelinePipeline
(No of Rooms)
AGR 23% C
1,174 1,074 Hotel Manager
478 745 545 Joint Venture 172 324 194
Owned Equity 1,986 2,061 2,061 2,061
2005 2006F 2007F 2008F Investor / Analyst Presentation 27 February 2006 Page 49 The Strength Behind The Brands MINTMINT’’ss HotelHotel SalesSales OutlookOutlook
Revenue (Bt Million) 7,000
6,000 R CAG 16% 5,000
4,000
3,000
2,000
1,000
0 2004 2005 2006F 2007F 2008F Investor / Analyst Presentation 27 February 2006 Page 50 The Strength Behind The Brands SpaSpa BusinessBusiness inin 20052005
Country Hotel # Rooms # Beds Thailand 1. Bangkok Marriott Resort & Spa 9 17 2. Pattaya Marriott Resort & Spa 5 10 3. Hua Hin Marriott Resort & Spa 5 10 4. JW Marriott Phuket Resort & Spa 10 20 5. Anantara Resort & Spa Hua Hin 6 11 6. Anantara Resort & Spa Golden Triangle 5 10 7. Anantara Resort & Spa Samui 6 12 8. Four Seasons Hotel Bangkok 9 12 9. The Imperial Queen’s Park 12 18 10. The Royal Orchid Sheraton Hotel Bangkok 9 18 11. Sheraton Krabi Beach Resort 6 11 12. Sala Samui Resort & Spa 4 8 13. The Plaza Athenee Bangkok 7 10 China 14. JW Marriott Hotel Shanghai 8 14 15. Sheraton Sanya Resort 11 18 Tanzania 16. Zamani Kempinski Resort 6 12 17. Kilimanjaro Kempinski Hotel 7 10 Africa 18. Bodu Huraa Resort & Spa 5 10 Investor / AnalystTotal Presentation 130 231 27 February 2006 Page 51 The Strength Behind The Brands ExpansionExpansion ofof SpaSpa BusinessBusiness
The most renowned spa in Asia 13 new spas to be added in 2006 Coverage countries include China, Maldives, Indonesia, UAE, Jordan, Lebanon, Tanzania, Vietnam, and Thailand
Investor / Analyst Presentation 27 February 2006 Page 52 The Strength Behind The Brands RetailRetail PropertiesProperties && EntertainmentEntertainment
Retail Properties & Location Size (SqM) Entertainment
Bangkok 7,511
Pattaya 19,983
In Royal Garden Plaza Pattaya 2,084
Future expansion: c. 2,000 Sqm rental space in Phuket properties in 2007
Investor / Analyst Presentation 27 February 2006 Page 53 The Strength Behind The Brands MINTMINT’’ss 20062006 GrowthGrowth FrameworkFramework
Total system sales growth
FoodFood At At leastleast 20%20%
HotelHotel 20% 20%
SpaSpa At At leastleast 100%100%
OtherOther 15% 15%
Investor / Analyst Presentation 27 February 2006 Page 54 The Strength Behind The Brands MINTMINT’’ss BusinessBusiness ModelModel
A complimentary mix of business Strong organic growth through food franchising and hotel contract management – Asset Light Global brands Strategic acquisition in brands offering significant scale, growth, and return
Investor / Analyst Presentation 27 February 2006 Page 55 The Strength Behind The Brands CorporateCorporate StrategyStrategy
Grow the top-line sales Control costs Reduce G&A Have system/controls (IT/HR) to support development A balanced approach to investing in growth
Investor / Analyst Presentation 27 February 2006 Page 56 The Strength Behind The Brands ManagementManagement StructureStructure
BoardBoard ofof DirectorsDirectors
AuditAudit CommitteeCommittee
ChairmanChairman && CEOCEO GroupGroup WilliamWilliam EE HeineckeHeinecke
ChiefChief OperatingOperating OfficerOfficer ChiefChief OperatingOperating OfficerOfficer ChiefChief ExecutiveExecutive OfficerOfficer ChiefChief FinancialFinancial OfficerOfficer ChiefChief PeoplePeople OfficerOfficer SpaSpa GroupGroup HotelHotel GroupGroup FoodFood GroupGroup GroupGroup GroupGroup StevenSteven ConquyConquy MichaelMichael SagildSagild PaulPaul CC KennyKenny PratanaPratana ManomaiphiboonManomaiphiboon PatamawalaiPatamawalai RattanapolRattanapol
Investor / Analyst Presentation 27 February 2006 Page 57 The Strength Behind The Brands TheThe ManagementManagement TeamTeam
William E. Heinecke The founder of Minor Group of Companies. Born in 1949, and was first elected the Board of Minor International in 1980. Currently also a director of Sermsuk Plc, and Rajdamri Hotel Plc Paul C. Kenny The Chief Executive Officer of the Minor Food Group Plc. Born in 1949 and was first elected to the Board in 1997. Mr. Kenny has over thirty years of experience in the management of leading international food service concepts in Australia, Taiwan, and Thailand. He is also a Director of Minor Corporation Plc. Patamawalai Rattanapol The Chief People Officer of Minor Group of Companies. Born in 1956, Ms Patamawalai has joined Minor Group for more than 20 years. She was also elected to the Board of Minor Corporation Plc Pratana Manomaiphiboon The Chief Financial Officer of Minor International. First elected to the Board in 1998, she was born in 1964 and holds a Master Degree of Business Administration from Thammasat University. Ms. Pratana joined Minor International Plc 8 years ago. She also serve a group Director of Minor Corporation Plc Michael Sagild Mr. Michael Sagild appointed Chief Operating Office in January 2006. His career in hospitality goes back to 1985 at the Hyatt, Shangri-La Hotels in Australia, Dubai, Saudi Arabia, Thailand, Malaysia, and Singapore. His last position before joining MINT was Regional Managing Director, Asia Pacific for Le Meridian Hotels & Resorts, responsible for overseeing Le Meridian’s collection of 21 5-star hotels in the Asia Pacific Region Steven Conquy Mr. Steven Conquy appointed Chief Operating Officer of MSpa (Thailand) overseeing the operations of MINT’s Mandara spa both internationally and domestically. Before joining, Mr. Conquy held Senior Executives position with L’Oreal Group in Paris, Wales, London, Thailand and his last position was Managing Director and Member of the Board of L’Oreal Group Russia.
Investor / Analyst Presentation 27 February 2006 Page 58 The Strength Behind The Brands ShareholdersShareholders ValueValue EnhancedEnhanced
MINT’s ROIC MINT’s strategies have 15.5% successfully increased shareholder value
9.6% Significant increase in ROIC driven by the 8.1% WACC successful acquisition of Minor Food Asset light business opportunities (ie. food franchising and hotel
2001 2005 management) should increase ROIC further Investor / Analyst Presentation 27 February 2006 Page 59 The Strength Behind The Brands CapexCapex PlanPlan
(Bt3,000 Million)
2,500
2,000
1,500 New Opportunities
1,000 New Projects & JV 500 Repair & Maintenance 0 2005 2006F 2007F 2008F
Investor / Analyst Presentation 27 February 2006 Page 60 The Strength Behind The Brands ForecastedForecasted CashCash FlowFlow 20062006--0808
Bt Billion EBITDA 11.5 – 12.4 Planed Capex (4.4) – (7.3) Tax & Finance (2.0) – (2.3) New Equity * 2.8 – 3.0 Free Cash Flow to Shareholder 5.8 – 7.9
*Note: New equity assumed proceeds of Bt 1,070m from rights offering in February 2006 and warrant exercise of Bt 1,908m during 2007- 2008
Investor / Analyst Presentation 27 February 2006 Page 61 The Strength Behind The Brands
300HistoricalHistorical CashCash DividendDividend PayoutPayout
(Bt Million) TBD 236 250 241 200
150 163
100 108
50
0 2001 2002 2003 2004 2005F Note: Cash dividend in 2004 include dividend to treasure shares. In additions, apart from cash dividend, MINT also paid Bt 307 million stock dividend to shareholders for its 2004 performance Investor / Analyst Presentation 27 February 2006 Page 62 The Strength Behind The Brands DividendDividend PolicyPolicy
MINT’s 2004 dividend payout policy was 60% MINT has determined the optimal level of dividend payout which would enhance its aggressive earnings growth projection MINT shall require no further capital based on our present plan Strong financial performance and strategies that support long-term growth allow MINT to provide a promising dividend payout in future
Investor / Analyst Presentation 27 February 2006 Page 63 The Strength Behind The Brands ComingComing AttractionsAttractions inin 20062006
Mar: Issuance of 1 for 10 warrant of 314 million units – exercisable monthly in 2-year @Bt6.00 May: Signing of the first franchise contract of China Jun: Opening of Anantara Resort Maldives Aug: Opening of Naladhu Villa Maldives Oct: Opening of Four Seasons Samui
Investor / Analyst Presentation 27 February 2006 Page 64 QuestionsQuestions && AnswerAnswerss AppendixAppendix The Strength Behind The Brands MINTMINT AtAt AA GlanceGlance
Minor International Public Company Limited (MINT) is Thailand’s largest hospitality and leisure operator with annual sales of over US$250 million and employing over 15,000 people. Within its hotel division, MINT currently owns and operates a portfolio of 12 hotels with a combined inventory of over 2,300 rooms under the Marriott, Four Seasons, Anantara, and Minor International brands. MINT is also Thailand’s largest food service operator with over 550 outlets under the Pizza Company, Swensen’s, Sizzler, Dairy Queen and Burger King brands. The Company also owns and operates retail and entertainment outlets, a chain of luxury spas under the M-Spa brand, the Marriott Phuket Beach Club in a joint venture arrangement with Marriott International and the award winning Manohra Cruises along Bangkok’s famous Chao Phraya River.
Investor / Analyst Presentation 27 February 2006 Page 67 The Strength Behind The Brands 4Q054Q05 OccupancyOccupancy RateRate && ADRADR
Occupancy Avg. Room Rate(Bt/night) Hotel 4Q05 4Q04 4Q05 4Q04 %Chg
Bangkok Marriott Resort & Spa 85% 88% 4,073 3,263 25% Pattaya Marriott Resort & Spa 81% 78% 3,400 2,996 13% Hua Hin Marriott Resort & Spa 88% 80% 3,622 3,458 5% JW Marriott Phuket 67% 74% 6,608 6,065 9% Anantara Resort & Spa Hua Hin 81% 69% 4,344 4,094 6% Anantara Resort & Spa Golden Triangle 50% 57% 5,762 4,782 20% Anantara Resort & Spa Koh Samui 47% n/a 5,707 n/a n/a Four Seasons Resort Chiang Mai 67% 67% 14,672 13,628 8% Four Seasons Hotel Bangkok 73% 82% 6,029 5,450 11% Average 76% 75% 5,033 4,572 10%
Investor / Analyst Presentation 27 February 2006 Page 68 The Strength Behind The Brands 4Q054Q05 RevParRevPar && TotalTotal RevenueRevenue
Rev Par (Bt) Total Revenue (Btm) Hotel 4Q05 4Q04 % Chg 4Q05 4Q04 %Chg
Bangkok Marriott Resort & Spa 3,476 2,856 22% 278 242 15% Pattaya Marriott Resort & Spa 2,741 2,328 18% 120 109 10% Hua Hin Marriott Resort & Spa 3,195 2,765 16% 102 88 16% JW Marriott Phuket Resort & Spa 4,402 4,504 -2% 218 203 7% Anantara Resort & Spa Hua Hin 3,526 2,842 24% 94 77 22% Anantara Resort & Spa Golden Triangle 2,898 2,739 6% 39 47 -17% Anantara Resort & Spa Samui 2,663 n/a n/a 43 9 n/a Four Seasons Resort Chiang Mai 9,844 9,119 8% 128 120 7% Four Seasons Hotel Bangkok 4,396 4,479 -2% 295 282 5% Average 3,813 3,453 10% 1,317 1,177 12%
Investor / Analyst Presentation 27 February 2006 Page 69 The Strength Behind The Brands 4Q054Q05 ConsolidatedConsolidated PerformancePerformance
(Bt Million) 4Q05 % 4Q04 % % Growth Food Services 1,295 44% 1,232 48% 5% Hotel Services 1,351 46% 1,087 43% 24% Retail Property 99 3% 83 3% 20% Spa 102 3% 85 3% 20% Entertainment 21 1% 14 1% 48% Other income 78 3% 42 2% Total Revenue 2,946 100% 2,542 100% 16% Operating Expenses 911 31% 796 31% SG&A Expenses 1,114 38% 996 39% EBITDA 921 31% 751 30% 23% Depreciation & Amortization 299 10% 264 10% EBIT 622 21% 487 19% 28% Interest Expenses 74 2% 58 2% Tax & Minority 165 6% 122 4% NetInvestor Profit / Analyst Presentation 384 13% 306 12% 25% 27 February 2006 Page 70 The Strength Behind The Brands 4Q054Q05 ConsolidatedConsolidated PerformancePerformance
(Bt Million) 4Q05 EBITDA Contribution Food Services 1,295 Hotel Services 1,351 Retail Property 99 Hotel Spa 102 58% Retail Property Entertainment 21 8%
Other income 78 Spa 3%
Total Revenue 2,946 Food Services Entertainment Operating Expenses 911 29% 2% SG&A Expenses 1,114 EBITDA 921 Depreciation & Amortization 299 Net Profit Contribution EBIT 622 Food Services 67 17% Interest Expenses 74 Hospitality & Leisure 317 83% Tax & Minority 165 Consolidated Net Profit 384 NetInvestor Profit / Analyst Presentation 384 27 February 2006 Page 71 The Strength Behind The Brands HotelHotel –– OwnedOwned EquityEquity
Equity Hotel # Rooms Hotel Interest Manager 2005A 2006F 2007F Bangkok Marriott Resort & Spa 81% MINT 413 413 413 Pattaya Marriott Resort & Spa 100% MINT 293 293 293 Hua Hin Marriott Resort & Spa 100% MINT 216 216 216 JW Marriott Phuket Resort & Spa 100% Marriott 259 259 259 Anantara Resort & Spa Hua Hin 100% MINT 187 187 187 Anantara Resort & Spa Golden Triangle 100% MINT 106 106 106 Anantara Resort & Spa Samui 100% MINT 77 77 77 Four Seasons Hotel Bangkok 91% Four Seasons 340 340 340 Four Seasons Resort Chiang Mai 69% Four Seasons 80 80 80 Four Seasons Tented Camp New 100% Four Seasons 15 15 15 Four Seasons Samui New 100% Four Seasons 75 75 Total – Owned Equity 1,986 2,061 2,061 Investor / Analyst Presentation * Four Season Samui – The villas with 60 room keys and 15 residential units planned to be managed under 27 February 2006 Four Seasons brand. Page 72 The Strength Behind The Brands HotelHotel –– JointJoint VentureVenture
Equity Hotel # Rooms Hotel Interest Manager 2005A 2006F 2007F
Timeshare Phase 1,2,3 50% Marriott 144 144 277
Luxury Hotel, Maldives 1,2,3 50% MINT 50 180 180
Luxury Hotel, Phuket 50% MINT 88
Total – Joint Venture 194 324 545
Investor / Analyst Presentation 27 February 2006 Page 73 The Strength Behind The Brands HotelHotel –– ContractContract ManagementManagement
Equity Hotel # Rooms Hotel Interest Manager 2005A 2006F 2007F Harbour View, Vietnam 20% MINT 122 122 122
Luxury Hotel, Maldives 1,2,3 50% MINT 50 180 180 Bali Cliff MINT 176 176
Luxury Hotel, Dubai 1 MINT 279
Luxury Hotel, Dubai 2 MINT 198
Anantara Chiang Mai 10% MINT 119
Total – Contract Management 172 478 1,074
Investor / Analyst Presentation 27 February 2006 Page 74 ThankThank YouYou
FOR MORE INFO..
Prapharat Tangkawattana Senior Finance Director Investor Relations +66 2 3815151 Ext 1306 [email protected] Or visit our website: www.minornet.com