CENTRAL PLAZA HOTEL PCL.
March 1, 2016 Company Background
Hotel Business
Food Business
Financial Highlight & Outlook
2 COMPANY BACKGROUND
3 CENTRAL GROUP & CENTEL OVERVIEWS
Central Group Business Unit Equity market information Symbol: CENTEL
Sector: Tourism
Div Policy: 60% Tos Chirathivat Group CEO CENTEL Price: Bt39.75 (as of 04/03/16)
Market Cap: Bt53,663mn
CENTEL’S Shareholders @Dec 31, 15 “Chirathivat” family 66% Yuwadee Pascal Suthisarn Worawoot Preecha Edwin Yap Thirayuth Thiradej Chirathivat Billaud Chirathivat Ounjai Ekkunagul Hawson Chirathivat Chirathivat CEO CEO CEO CEO CEO CEO CEO CEO Local investors 20% Foreign investors 14%
4 MILESTONES
Capital increase of Baht 450 Listed in Capital million CENTEL’sThe StockMILESTONE increase Exchange of Baht Par splited
Corporate of Thailand 500 from Baht 5 (SET) million to Baht 1 Terminated Terminated Café Beard Papa’s Acquired Andonand “Ootoya” Terminated home Pizza Hut and Bought 5 cooking usiness introduced Authorized Franchisee Baskin Robbins new brands style bb Introduced Introduced Introduced “Mister franchisee of Auntie Pepper and introduced into Japanese “Tenya” into “katsuya” into Donut” of KFC Anne’s Lunch Beard Papa’s portfolios restaurant
Food portfolio portfolio
1978 1983 1984 1990 1991 1998 2006 2007 2008 2009 2010 2011 2012 2013 2014
1st hotel, Rebranding Centara Centara Opening Step up Centara Step up “Centara hotel brand Grand at Grand Mirage Centara acquisition of Maldives acquisition of Grand at from Central Beach Resort, Grand • Centara (24‐Mar) Centara ness ii Central “Central” to World Pattaya Phuket Karon, Kata Ladprao “Centara” (Feb) (7‐Oct) bus Bangkok” Launched Opening the • Centara Property 1st oversea Maldives
Hotel Fund JVs in (Mar) (Centara Maldives • Centara GGarand “Centara Grand Samui) Grand Resort Maldives & Spa, (Dec) Maldives” 5 BUSINESS CONTRIBUTION 2015
Total Revenue and Profit by Segment Total Revenue by Geography Hotel Food Overseas
30% 31% 9% 53%
70% 69% 47% Thailand
91% Total EBITDA NPAT Revenue*
* Excluded equity gain (loss) from property fund, amortization of deferred rental income 6 HOTEL BUSINESS
7 BRANDS & KEY STRATEGY
2 Key Strategies Key Brands
Traditional Independent Extended Brands Focusing on expansion of portfolios through hotel Lodging Travelers Stay management business Grand Asset Design Light Strategy Exclusively Yours AtAsset Rig ht Strategy Designed & Focused
Value Proposition Investing in property (100% equity or JVs) using internal cash flow and leverage, subject to internal guideline Economy Brand 8 HOTEL PORTFOLIOS AS AT 31 DEC 15
Hotels in Owned Property Managed Total % operation hotels Fund hotels Middle East CHN Thailand 3,358 202 3,499 7,059 91% 3 hotel 3 hotel
Overseas 252 ‐ 409 661 9% THA VNM 43 hotels 4 hotel TtlTotal Rooms 3,610 202 3,908 7,720 100% LAOS Srilanka 1 hotel Total Hotels 14 1 25 40 1 hotels Maldives IND Hotels in Owned Property Managed 2 hotels Total % 4 hotels pipeline hotels Fund hotels Total Portfolio: 62 hotels with 12,899 rooms Thailand 451* ‐ 1,373 1,824 35%
Overseas 300** ‐ 3,055 3,355 65% Hotels in pipeline by number of rooms*** Overseas Thailand # of hotels TtlTotal Rooms 751 ‐ 4,428 5,179 100% 4,500 13 20
5 10 Total Hotels 4 ‐ 18 22 3,500 2 2
0 Total Owned Property Managed 2,500
Total % ‐10 portfolio hotels Fund hotels 2,595 1,500 ‐20 Thailand 3,809 202 4,872 8,883 69% 514 200 46 500 ‐30 536 301 737 250 Overseas 552 ‐ 3,464 4,016 31% ‐40 -500 2016F 2017F 2018F 2019F TlTotal Rooms 4,361 202 8,336 12,899 100% Remark: Overseas include Indonesia, Laos, Maldives, Sri Lanka, Total Hotels 18 1 43 62 Doha, Oman, Cuba and China *2 COSI hotels, **2 New Maldives projects *** including contracts on hands only 9 FEEDER MARKET 2014 vs. 2015
CENTARA’s Guests by room nights
36% 37%
31% nights 27% m roo
total
17% f oo
15% % 10% 9%
3% 4% 3% 3% 2% 3%
Asia AUS EU Middle East THA USA Others
10 HOTEL PERFORMANCE SNAPSHOT
OCC (%) 2013A* 2014A 2015A NbNumber of rooms TtlTotal R**Revenue** (Btm) Bangkok 77.5% 61.6% 81.3% Owned + JVs Hotels Total Revenue Upcountry 80.3% 78.9% 79.6% Managed Hotels +9% 9,041 Maldiv es 90.6% 86.2% +1% 84.8% 8,274 8,316 Average 79.8% 74.8% 80.5% 4,078 4,773 3,908 ARR (Bt) 2013A* 2014A 2015A 3,812 3,812 3,812 Bangkok 3,097 3,112 3,248 2013 2014 2015 2013 2014 2015 Upcountry 3,886 3,987 4,017 Maldives 15,376 17,455 19,133 EBITDA (Btm) EBITDA Margin Average 4,370 4,855 4,809 32.6% RevPar 2013A* 2014A 2015A (()Bt) +12% 31.7% +2% 2,946 31.4% Bangkok 2,401 1,917 2,642 2,597 2,636 Upcountry 3,122 3,146 3,197 Maldives 13,040 15,814 16,495 Average 3,486 3,632 3,872 2013 2014 2015 2013 2014 2015
Noted: *Included Maldives since 2013 Noted: **Excluded extra items and deferred rental income from PFPO 11 CENTARA vs. MARKET PERFORMANCE
Tourist Arrivals CENTEL - OCC Industry - OCC
80% 81% 100% 60.0 70% 75%
50.0 50% 61% 65% 56% 62%
40.0 0% +20% +9% 30.0 +18% ‐6% ‐50% +17%
20.0 ‐100% 29.9 32.5 26.5 24.8 10.0 22.4 ‐150%
0.0 ‐200% 2012A 2013A 2014A 2015A 2016E*
Source: BOT * Source: National Economics and Social Development Board ‐ NESDB 12 REVENUE CONTRIBUTION BY LOCATION
Revenue 2014 2015
30%
19% 26% 16% 21% 13% 16% 14% 7% 7% 6% 2% 8% 7% 6% 3%
Bangkok Maldives Phuket Pattaya Hua Hin Samui Krabi Others
FY15 Bangkok Maldives Phuket Pattaya Hua Hin Samui Krabi Hat Yai Tak Total # Hotels 2 2 41 1211115 # Rooms 1,077 252 827 555 249 302 192 245 113 3,812 % of Total 28.3% 6.6% 21.7% 14.6% 6.5% 7.9% 5.0% 6.4% 3.0% 100% Rooms RPRevPar 37.8% 4.3% ‐2.2% ‐0.9% 5.4% 5.2% 6.3% 9.6% ‐0.2% 6.6% Growth 13 FOOD BUSINESS
14 BRANDS AND KEY STRATEGY
10 Brands 1 Brand Establishment Key Strategy (Franchise Agreements) (In House)
Joint venture with partner 1978 Joint Venture 1984
1988
Acquisition 2007
2010 Owned‐Outlet Acquisition Expansion 2011
Existing brands expansion 2013 across Thailand All expansion plans are expected to be supported by 2014 internal cash flows and debt. 15 PORTFOLIOS AS AT 31 DECEMBER,2015
Brands # Outlets KFC 207 6.8% in 12.4% in Mister Donut 318 the North Northeast Auntie Anne’s 129 36% Ootoya 47 59.3% Pepper Lunch 15 in CtlCentral 3.3% in Cold Stone 16 the West Ryu Shabu 1 9.9% in The Terrace 15 the East Outlets and Revenue Contribution: Chabuton 16 36% of total outlets and revenue Yoshinoya17 are from Bangkok (excl. greater Bkk)Bangkok) Tenya 4 8.3% in Katsuya 7 the South Total 792
16 FOOD PERFORMANCE SNAPSHOT
SSS TSS Number of Outlets +1% +5%
9.7% 9.3% 781 792 743 0.9% 1.4% 2.0% ‐0.7% 2013 2014 2015 2013 2014 2015
Total Revenue (Btmn) +2% EBITDA (Btmn) EBITDA Margin
+9% 2,000 14%
10,175 13.1% 12.4% 12% 9,967 9.4% +35%10% 8%
9,183 1,000 1,199 ‐22% 1,263 6%
937 4%
2%
0 0%
2013 2014 2015 2013 2014 2015 17 REVENUE CONTRIBUTION BY BRANDS
FY14 FY15 54% 55%
19% 19% 9% 8% 7% 7% 9% 9% 2% 2%
KFC MD OOTOYA AA Other Heavy Food Other Light Food
Other heavy Other light FY15 KFC Mister Donut Auntie Anne’s Ootoya Total food* food** #Outlets 207 318 129 47 75 16 792 % of total 26% 40% 16% 6% 10% 2% 100% outlets YoY growth 20%2.0% ‐19%1.9% 32%3.2% ‐ 10% 14% 1% (#outlet) *Other heavy food included Pepper Lunch, Chabuton, Ryu, The Terrace, Yoshinoya, Tenya and Katsuya **Other light food included Cold Stone and Beard papa’s (terminated in 3Q14) 18 Financial Highlight and Outlook
19 DEBT PROFILE AS AT DECEMBER 31, 2015
Loan breakdown by type Bt8,699mn Interest Bearing Debt with Average Cost of Debt at 4.1% LT debt, 4,102MB , 47% Loan breakdown by type
Unit: Btmn 4,999
3,159 Floating rate, 4,231MB , 49%
463 71 6 USD loans, O/D ST/L Debentures LT/L Finance 23% Lease Liabilities Baht loan, 77% 20 GUIDANCE 2016
Hotel FY15A FY16F Food FY15A FY16F Occupancy 81% 81% SSS ‐1% 1% RevPar 7% 6% TSS 2% 5% Revenue from operation 7% 6% Outlet Expansion 1% 4%
Key Factors Key Factors
Market Demand Key ARR’s drivers 4 Key brands Cost Control Sustain Growth •KFC, Mister •Continued •Bangkok’s property in •Number of tourist Donut, Auntie focusing on particular Centara arrivals continue to Ann’s and cost control Grand at Central grow by 9% in 2016, Ootoya and maintain World based on NESDB’s EBITDA margin •Centara Grand forecast at least 12.5% Maldives –post renovation
21 DEVELOPMENT HIGHLIGHT
. 77,,720720 rooms (40(40 hotels) . 792 outlets of 12 brands . 55,,726726 rooms ((3232 hotels) . 512 outlets of 8 brands . 1515,,000000 rooms (>(>5050 hotels) . >>11,,000000 outlets
22 THANK YOU
23