Opportunity Day Presentation 1Q12 Central Plaza Hotel Public Company Limited May 24, 2012
Centara Grand @ Central World Agenda
o 1Q12 Financial Summary o Performance by Business o Hotel Business o QSR Business o Medium Term Outlook
2 CENTEL's Opportunity Day 1Q12 1Q12 Financial Summary
Centara Grand Nusa Dua Resort and Villa
3 CENTEL's Opportunity Day 1Q12 Consolidated Earnings 1Q12:
Revenue by business Financial highlights: • Revenue and NPAT grew by 24.1% and 41.1%, respectively. • Significant profit contribution was derived from hotel business.
Unit: Baht in millions
1Q12 1Q11 Change % Change Total Revenues EBITDA by business Hotel 1,821.0 1,520.0 301.0 19.8% Food 1,901.2 1,479.1 422.1 28.5% Total Revenues 3,722.2 2,999.1 723.1 24.1% Total Cost & Expenses (exc. depre) (2,730.2) (2,190.4) (539.8) 24.6% Equity Gain (Loss) 57.2 49.7 7.6 15.3% Total EBITDA 1,049.3 858.4 190.9 22.2%
Total Net Profit - before extra items 537.1 383.3 153.8 40.1% Extra-items Net profit by business Amortization of deferred rental income (PFPO) 28.5 24.8 3.7 Extra-equity gain in PFPO - from Asset Revaluation 0.0 2.4 (2.4) Loss on guarantee provision PFPO 0.0 (9.6) 9.6 Net Profit - after extra items 565.6 400.9 164.7 41.1% EPS (Baht per share) 0.42 0.30 0.12
4 CENTEL's Opportunity Day 1Q12 Summary of financial position
Assets Liabilities & Shareholders’ Equity
Mil. Baht Mil. Baht 21,684 22,652 22,652 21,684
5 CENTEL's Opportunity Day 1Q12 Debt Structure as at 31 March 2012: Total loans of 10,498.4MB with average cost of debt of 4.54%
Baht in millions
31-Mar-12 31-Dec-11
Gearing Ratio 1.55x 1.65x
S-T LOANS (39.5%) = 4,142.9 MB L-T LOANS (60.5%) = 6,355.5 MB FIXED-RATE LOAN (38.5%) = 4,040.0 MB FLOAT-RATE LOAN (61.5%) = 6,458.4 MB
Note: Excluding interest bearing debt of JVs 6 CENTEL's Opportunity Day 1Q12 Hotel Business
Centara Villas Samui
7 CENTEL's Opportunity Day 1Q12 Hotel: Financial Snapshot 1Q12 Strong revenue growth with improvement in margin
Revenue by category and EBITDA margin Growth 1Q12/1Q11
Room +14.7%
F&B +27.4%
Other income +22.6% 1,520 1,049 1,170 1,184 1,821 Total +19.8%
o Increase in OCC is the key driver of revenue growth in 1Q12. 1Q12 1Q11 Chg o Top performers were Centara Grand @ central World, Centara Grand # of Available Rooms* 3,524 3,427 +97 Phuket and Centara Grand Ladprao (CGLB).
Note: o Revenue from convention business -* Owned and JV hotels in Thailand only (average no. of rooms per day) increased by 87% yoy to Bt147mn in - Additional rooms for 1Q12 were mainly from from Centra Grand Central Plaza Ladprao 1Q12, mainly contributed by strong growth in this business, especially at CGCW.
8 CENTEL's Opportunity Day 1Q12 Hotel Portfolios: Current 31 operating hotels, totaling 6,118 rooms (including 11 owned properties, 2 JVs, 1 Property Fund and 17 hotels under management contract).
Number of Rooms by Ownership type Number of Hotels vs. Number of Rooms
Managed, Owned & JVs, 2012E
Number of Rooms by Category
Number of rooms of Number
Number of Rooms by Geography 2,731 3,059 3,792 5,726 5,933 7,360 6,118 Overseas,
Note: *as of May 20, 2012 2012E
Thailand,
9 CENTEL's Opportunity Day 1Q12 Hotel’s KPI by Brand
OCC by Brand 1Q12 1Q11 Chg o Occupancy Rate (OCC): • Grand 74.0% 70.2% 3.8% average OCC increased to 75.2% primarily contributed by • Centara 78.2% 71.6% 6.6% improvement in OCC from Average OCC 75.2% 70.6% 4.6% properties in Samui, Phuket and Centara Grand @ Ladprao. o Average Room Rate (ARR) ARR (Baht) by Brand and RevPar: growth in ARR • Grand 5,118 5,119 0.0% was flat at 0.1% yoy to Bt4,472. • Centara 2,985 2,978 0.2% However, RevPar growth was at 6.5% yoy as a result of high Average ARR 4,472 4,469 0.1% OCC. o Top RevPar growth was from RevPar (Baht) by Brand properties in Hat Yai, Bangkok and Phuket. • Grand 3,786 3,594 5.3% • Centara 2,333 2,131 9.5% Average RevPar 3,363 3,156 6.5%
10 CENTEL's Opportunity Day 1Q12 Hotel: Revenue Contribution by Location o In 1Q12, revenue contribution from properties in Bangkok accounted for 35.7% as result of the increase in room and F&B revenue as well as convention business. o Contribution from Phuket properties increased from 14.2% to 16.8% between 1Q11 and 1Q12. This was due to higher revenue contribution from 2 properties in Phuket as well as the consolidation of revenue from “Centara Karon Phuket” since March 2012.
1Q11 1Q12 Bt1,446.4mn* +20.3% yoy Bt1,740.3mn*
Note: *Hotel operating income only, excluding other income and revenue from JVs
11 CENTEL's Opportunity Day 1Q12 International tourist arrivals
No. of international tourist arrivals and occupancy o Total tourist arrivals in 1Q12 rose 7% yoy to
5.7mn.
o East Asia was a major source market, contributing about 49%, followed by Europe accounting 34% improving from 4Q11 as
seasonal affect. Million Tourists Million o Top 5 Arrivals contributed approx 38.5% of total arrivals. 4 out of top 5 are from Asia.
Top 5 International Arrivals Unit: Million Tourists 1Q12 % Share 1Q11 % Share % ∆ International Tourist Arrivals by Region Malaysia 0.58 10.15 0.57 10.82 0.48 China 0.56 9.86 0.47 8.94 18.15 Russia 0.41 7.18 0.40 7.49 2.74 Japan 0.34 5.97 0.32 5.97 7.18 Korea 0.31 5.36 0.29 5.44 5.68
Source: Bank of Thailand, Tourist Authority of Thailand
12 CENTEL's Opportunity Day 1Q12 Centara’s Feeder Market o Similar pattern of Centar’s feeder market is noted between 1Q11 and 1Q12. o For 1Q12, European maintained its the largest proportion, followed by Asian and domestic guests accounting for 53%, 17% and 14%, respectively.
Guest mixes by number of room nights
1Q11 1Q12
Note: Russia is included in Europe Others such as Latin America, Canada, South America
13 CENTEL's Opportunity Day 1Q12 Outlook of key destination market
14 CENTEL's Opportunity Day 1Q12 2 Properties recently added to Centara Portfolios
Centara Koh Chang Tropicana Resort: April 2012
o Set on the white sands of Klong Prao Beach, in the centre of Koh Chang's west coast. o 157 rooms along with the oceanfront swimming pool, water sports and spa, there are nearby attractions such as forest paths, waterfalls, a fishing village and an elephant camp to explore
Centara Hotel & Convention Centre Khon Kaen: May 2012 o Located in the heart of Khon Kaen, northern-Thailand’s commercial hub. o 196 rooms with a wide range of conference and meeting facilities awaits while great dining options and recreational facilities such as, outdoor swimming pool, fully-equipped fitness centre, and fantastic SPA Cenvaree.
15 CENTEL's Opportunity Day 1Q12 8 Hotels with1,242 keys in Pipeline 2012
Centra Government Complex Hotel & Convention Center Cheang Watthana Location: Bangkok Number of keys: 204 keys Opening: 2Q12
Centra Central station Bangkok
Location: Bangkok Number of keys: 150 keys Opening: 3Q12
16 CENTEL's Opportunity Day 1Q12 8 Hotels with 1,242 keys in Pipeline 2012 (Cont.)
Centara Grand Resort & Spa Pattaya Location: Pattaya Number of keys: 160 Rooms Opening: 4Q12
Centara Grand Nusa Dua Resort & Villas Location: Bali Number of keys: 82 Rooms Opening: 3Q12
17 CENTEL's Opportunity Day 1Q12 8 Hotels with 1,242 keys in Pipeline 2012 (Cont.)
Centara Passikudah Resort & Spa Srilanka Location: Srilanka Number of keys: 125 Rooms Opening: 4Q12
Centara Watergate Pavillion Hotel Bangkok Location: Bangkok Number of keys: 281 Rooms Opening: 4Q12
18 CENTEL's Opportunity Day 1Q12 8 Hotels with 1,242 keys in Pipeline 2012 (Cont.)
Centara Ras Fushi Resort & Spa Location: Maldives Number of keys: 140 Rooms Opening: 4Q12
Centara Poste Lafayette Resort & Spa Mauritius Location: Mauritius Number of keys: 100 Rooms Opening: 4Q12
19 CENTEL's Opportunity Day 1Q12 Food Business
20 CENTEL's Opportunity Day 1Q12 QSR: Financial Snapshot 1Q12 o Total revenue (including other income) increased by Bt422mn or 28.5% yoy to Bt1,901mn o Ootoya, KFC and Chabuton are top 3 brands contributing to revenue increase. o EBITDA margin declined compared to 1Q11 was mainly due to higher selling and administrative costs, primarily as results of outlet expansion.
Total Revenue VS EBITDA margin
Bt422mn
Note: Excluded depreciation allocated to cost
21 CENTEL's Opportunity Day 1Q12 QSR: 1Q12 Organic Growth vs. Total Growth o In 1Q12, revenue (excluding other income) increased by Bt409.7mn or 27.9% yoy, mainly derived from organic growth of Bt198mn (or 48%) and new brands of Bt212mn (or 52%).
Note: Revenue excluded other income Existing brands = KFC, Mister Donut /Café Andonand, Auntie Anne’s, Pepper Lunch, beard papa,’s Chabuton, Ryu Shubu Shabu and Cold Stone Creamery
New Brands = The Terrace, Yoshinoya and Ootoya 22 CENTEL's Opportunity Day 1Q12 QSR: Revenue Contribution by Brands o Ootoya (acquired since August 2011) contributed 9.7% of total revenue (or about Bt182.5mn) in 1Q12. Top 4 sources of revenue came from 4 brands (KFC, MD, Ootoya and Auntie Anne’s), accounting for 90.8% of total revenue.
1Q11 Revenue Contribution 1Q12 Revenue Contribution
+ Bt409.7 1Q11 (or 27.9%) 1Q12 Bt1,468 Bt1,877 mn mn
Note: Including ice-cream factory in Cold Stone Note: Including ice-cream factory in Cold Stone Others = CSC, BP, PL, TT, RYU and YO Others = CSC, BP, PL, TT, RYU and YO Excluding other income Excluding other income
23 CENTEL's Opportunity Day 1Q12 QSR: 1Q12’s SSS and TSS
Brand # Outlets Revenue growth o Same Store Sale (SSS) grew by SSS TSS 3.8%, with KFC and Auntie 1Q12 1Q11 Chg 1Q12 1Q12 Anne’s being the growth KFC 170 159 11 9.9% 17.2% drivers of 9.9% and 10.6%, Mister Donut 272 247 25 -7.4% -1.7% respectively. Auntie Anne's 89 80 9 10.6% 14.5% o Total System Sale (TSS) rose Pepper Lunch 13 9 4 -4.4% 53.3% by 27.9%, largely due to the beard papa's 15 9 6 -33.6% 23.6% continuous growth of KFC Chabuton 7 3 4 -28.2% 100.6% and revenue contribution Cold Stone Creamery 9 4 5 -15.4% 100.5% from new brand of Ootoya. Ryu Shabu Shabu 1 1 0 -10.8% -9.9% The Terrace 3 0 0 N/A N/A Yoshinoya 3 0 3 N/A N/A Ootoya 35 0 35 N/A N/A Total 617 512 105 3.8% 27.9%
Note: Cold Stone excluded Factory
24 CENTEL's Opportunity Day 1Q12 QSR’s Portfolios as of 1Q12 12 brands with 617 outlets
1Q12 Brands No. of outlets KFC 170 Mister Donut 271 Café 1 Andonand Auntie Anne’s 89 Pepper Lunch 13 Beard Papa’s 15 Chabuton 7 RYU 1 Cold Stone 9 The Terrace 3 Yoshinoya 3 Ootoya 35 Total 617
25 CENTEL's Opportunity Day 1Q12 Medium Term Outlook
Centara Sappaya Design Resort Rayong
26 CENTEL's Opportunity Day 1Q12 2012 Outlook o QSR business: Expected FY12 revenue growth at 25% - 27% yoy. Key growth drivers were mainly from KFC and Ootoya. o Hotel Business: Expected FY12 revenue growth at 20%-25% yoy (reflecting acquisition of additional 34.5% equity stake in Centara Karon Resort, Phuket (CKR); resulting in Centara holding 84.5% shares in CKR). Key growth drivers are primarily from properties in Bangkok and Phuket.
QSR 2011 2012E Hotel 2011 2012E
SSS (%) 14.8% 5% OCC (%) 63.9% 67% - 68%
Growth # of Outlets 603 655 ARR (Bt) 3,663 3% - 4%
Revenue Growth Revenue Growth 6,495.8 4,667.9 (Btmn) 25% - 27% (Btmn) 20% -25%*
Note: Revenue excluding other income Note: -*Including revenue of Centara Karon Resort Phuket since March 2012 - Revenue excluding other income and revenue from JVs
27 CENTEL's Opportunity Day 1Q12 Target CAPEX vs EBITDA
o In 2012, total CAPEX for annual renovation for hotel and QSR outlet expansion is target at approximately Bt1,150mn. o Investment amounting to Bt330mn has already been made related to the 2nd project in Maldives and acquisition of 34.5% of CKR shares in 1Q12. o Internally generated CF is expected to be sufficient for the new opportunity in the future.
28 CENTEL's Opportunity Day 1Q12 Target Ending Balance of Interest Bearing Debt o Assuming no investment in owned hotel from 2012 going forward, gearing ratio is expected to be lower than 1X in year 2014.
Note: Gearing Ratio = Interest Bearing Debt/ Equity
29 CENTEL's Opportunity Day 1Q12 CENTEL’s Milestone
2016E
2011 • Hotel > 80 2005 hotels • Hotel 7 hotels • Hotel 31 hotels (27 in Thailand • Hotel in • QSR 5 Brands, 427 and 4 in Overseas > 20 outlets overseas) • QSR 16 brands, • QSR 12 brands, > 800 outlets 603 outlets
30 CENTEL's Opportunity Day 1Q12 Thank you
Centara Grand West Sands Resort & Villas Phuket
31 CENTEL's Opportunity Day 1Q12