Q2/19 Analyst Meeting Presentation - listed...
Transcript of Q2/19 Analyst Meeting Presentation - listed...
Central Plaza Hotel Public Company Limited - CENTEL
Q2/19 Analyst Meeting Presentation
Agenda
� Q2/19 summary performance
� Hotel business overview
� Food business overview
� CAPEX and guidance 2019
� Appendix
Consolidated earning Q2/19 and 6M19
Note: * Total hotel revenue included deferred rental income
** Insurance claim from fire at Central World, Big C Rajdamri and Center One in 2010
Q2/19 Summary Performance Page 3
Decreases in Chinese & Russian during low season, Closure of Centara Grand Beach Resort Samui, Indirect impact from fire
event at CentralWorld shopping mall, Lower demand from government entities during changeover, Closure of food outlets at
Central Ladprao shopping mall, Ongoing value promotion campaign, and Increase in fixed costs.
THB million Q2/18 Q2/19 % Chg 6M18 6M19 % Chg
Total hotel revenue* 2,139.4 2,000.7 -6.5% 5,088.3 4,756.4 -6.5%
Total food revenue 3,051.7 3,224.9 5.7% 5,844.1 6,112.2 4.6%
Total revenues 5,191.1 5,225.6 0.7% 10,932.4 10,868.6 -0.6%
EBITDA 1,003.2 906.7 -9.6% 2,667.6 2,404.3 -9.9%
EBITDA margin (%) 19.3% 17.4% -1.9% 24.4% 22.1% -2.3%
Net profit from operation 371.7 290.5 -21.8% 1,254.8 1,035.8 -17.5%
Extraordinary items
Add: Insurance claim (net tax)** - - - - 80.6 NA
Less: Provision of long term employee benefits - (58.1) NA - (58.1) NA
Net profit excluding non-recurring items 371.7 232.4 -37.5% 1,254.8 1,058.3 -15.7%
Margin being pressured from several unfavorable factors
Low gearing & optimized profile
Page 4
Average funding cost of 3.16%
Fixed, 78%USD, 20%
Gearing ratio Dec 2018 Jun 2019
Current ratio 1.1 0.9
Interest bearing debt/Equity 0.5 0.5
Dec 2018 Jun 2019
OD, Short-term loan Debentures Long-term loan
Note: * Included current portion of long-term loan and debentures
*
THB 7.1bn 1.4%
60%
34%
6%
50%
28%
22%
Dec 2018 Jun 2019
Financial position
Total liabilities Total equity
49%
51% 52%
48%
THB 26.4 bn 1.1%
Total interest bearing debt
Q2/19 Summary Performance
THB 26.1 bn THB 7.0bn
Hotel business
overview
Thailand tourism overview Indian strong growth
Hotel Business Overview Page 66
Source: Ministry of Tourism and Sport
8.9 9.1 9.7 10.8 9.0
19.5 19.7
9.1% 2.7% 4.3% 1.5% 1.1%12.2%
1.3%
-200.0%
-150.0%
-100.0%
-50.0%
0.0%
50.0%
-5.0
5.0
15.0
25.0
35.0
45.0
55.0
Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 6M18 6M19
No. of tourist arrivals Growth yoy
Thailand number of tourist arrivals
Unit: million
Chinese (-4.9%) and European drop (-2.0%)
Thailand tourism overview
Page 7
Indian +24% yoy
(Unit : Person)
Source: Ministry of Tourism and Sport
Hotel Business Overview
-5%
7%
24%
3% 5%
11%
-3%
4% 3%1%
China
5,638,627
29%
Malaysia
1,930,252
10%
India
978,751
5%
Korea
907,343
5%
Laos
880,733
4%
Japan
4%
Russia
4%
USA
3%
Vietnam
3%
UK 3%
Hong Kong
2%Singapore
2%
Germany
2%
Cambodia
2%
France
2%
Others
19%
Top 15 - International Tourist Contribution
6M19No. of tourist arrivals to Thailand
Top 10 - International Tourist Arrivals growth (%) – 6M19
Millions FY
2018 38.3
2019 40.1 (F)*
Growth +4.7%
Note: *Forecasting from Tourism Council of Thailand, 25 June 2019
Hotel demand and supply in Maldives
Hotel Business Overview Page 8
Arrival growth from all regions
Number of operational beds*
41,487 42,355 43,660 45,106 47,443
7% 8% 8% 10% 14%
-200.0%
-150.0%
-100.0%
-50.0%
0.0%
50.0%
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
Q2/18 Q3/18 Q4/18 Q1/19 Q2/19
No. of operational beds Bed growth yoy
Source: Ministry of Tourism, Republic of Maldives
Note: * included hotels, resorts, guest houses and safari vessels
Unit: beds
Number of tourist arrivals and occupancy rate (yoy)
306,412 353,944 403,815482,978
379,611
726,515862,589
52% 57% 64% 75% 56% 63% 66%
-500.00%
-400.00%
-300.00%
-200.00%
-100.00%
0.00%
100.00%
200.00%
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 6M18 6M19
No. of arrivals % Occupancy
Source: Ministry of Tourism, Republic of Maldives
Unit: persons
3% 4% 3%15% 24%
11%19%
Maldives tourism overview
Page 9
(Unit : Person)
Source: Ministry of Tourism Republic of Maldives
Indian +100% yoy
Hotel Business Overview
China
140,265
16%
India
82,140
10%
Italy
75,376
9%
Germany
69,237
8%
UK
64,792
8%
Russia
5%
France
4%
U.S.A.
3%
Japan
3%
Australia
2%
Switzerland
2% Korea
2%
Thailand
2% Austria
1%
Saudi Arabia
1%
Others
24%
Top 15 - International Tourist Contribution
6M19
10%
100%
34%20% 13% 12%
23%34%
18% 14%
Top 10 – International Tourist Arrivals growth (%) – 6M19
Hotel portfolio – 13,783 rooms
Page 10
Upcoming overseas
In operation Pipeline
Thailand Overseas Total Thailand Overseas TotalGrand
total
Owned 15* 2 17 2 3 5 22
Managed 19 4 23 9 17 26 49
Total 34 6 40 11 20 31 71
In operation Pipeline
Thailand Overseas Total Thailand Overseas TotalGrand
total
Owned 3,940 252 4,192 412 911 1,323 5,515
Managed 2,738 786 3,524 1,628 3,116 4,744 8,268
Total 6,678 1,038 7,716 2,040 4,027 6,067 13,783
As of June 2019
54%
Owned
Total portfolio by rooms
*Including JV and property fund
63%
Thailand
40%
Owned
Number of hotels Number of rooms
In operation by rooms
87%
Thailand
Hotel Business Overview
Pipeline – 6,067 rooms
11Hotel Business Overview Page 11
AEC, Middle East and Indian Ocean
# of rooms Owned ManagedTotal
Year 2019E 2021E 2022E 2019E 2020E 2021E 2022E
Bali 210 210
Cambodia 240 240
China 596 596
Dubai 601 601
Laos 322 104 200 626
Maldives 310 234 544
Qatar 252 509 761
Turkey 449 449
Thailand 282 130 179 571 358 520 2,040
Total Rooms 282 731 310 431 1,402 1,058 1,853 6,067
Total Hotels 1 2 2 3 7 7 9 31
As of June 2019
Summary of pipeline 2019E-2022E
China 596 keysEast Asia
Turkey 449 keysWest Asia
Bali, Cambodia, Laos and Thailand 3,116 keys Southeast Asia
Maldives 544 keys South Asia
Doha and Dubai 1,362 keysMiddle East
Total portfolio: number of rooms by region
*
* Target to open in October 2019
2,139 2,001
5,088
4,756
607 543
1,9311,719
0
1,000
2,000
3,000
4,000
5,000
6,000
Q2/18 Q2/19 6M18 6M19
Total Revenue EBITDA
10.5%
6.5%
11.0%
6.5%
Hotel performance
12Hotel Business Overview Page 12
36.1%
Unit: THB mn
EBITDA margin 27.1%
Chinese, key feeder during low season, drops, together with the closure of Centara Grand Samui for renovation since June,
Indirect impact from fire event at CentralWorld shopping mall and lower demand from government entities during changeover.
Impact from Soft demand & Closure for renovation
28.4% 37.9%
Total own portfolio
13Hotel Business Overview Page 13
Q2/19 RevPar -6.4% from Occupancy
4,050
4,845
4,051
4,839
2,952
3,784
2,949
3,770
72.9%
78.1%
72.8%
77.9%
50%
55%
60%
65%
70%
75%
80%
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
Q2/19 6M19 Q2/19 6M19
Average Room Rate (ARR) Revenue Per Available Room (RevPar) Occupancy (OCC)
6.6%
2.0%
6.4%
4.6%
0.3%
5.9%
6.4%
4.7%
3.1%
5.2%
0.5%
5.2%
Excluding Centara Grand SamuiIncluding Centara Grand Samui
Thailand portfolio
14Hotel Business Overview Page 14
Q2/19 RevPar -7.5% from occupancy
3,2573,937
3,2343,893
2,357
3,054
2,3363,012
72.4%
77.6%
72.2%
77.4%
50%
55%
60%
65%
70%
75%
80%
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
Q2/19 6M19 Q2/19 6M19
Average Room Rate (ARR) Revenue Per Available Room (RevPar) Occupancy (OCC)
7.1%
1.6%
7.5%
5.1%
0.7%
6.9%
7.0%
5.2%
3.6%
5.5%
0.7%
5.7%
Excluding Centara Grand SamuiIncluding Centara Grand Samui
Bangkok portfolio
15Hotel Business Overview Page 15
Q2/19 Revpar -7.9% from occupancy and room rate
2,879 3,093
2,207 2,430
76.6%78.6%
50%
55%
60%
65%
70%
75%
80%
85%
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
Q2/19 6M19
Average Room Rate (ARR) Revenue Per Available Room (RevPar) Occupancy (OCC)
4.7%
7.9%
5.2%
0.2%
6.4%
2.3%
Upcountry portfolio
16Hotel Business Overview Page 16
Q2/19 RevPar -7.2% from occupancy
3,466
4,365
3,439
4,325
2,433
3,365
2,404
3,319
70.2%
77.1%
69.9%
76.7%
50%
55%
60%
65%
70%
75%
80%
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
Q2/19 6M19 Q2/19 6M19
Average Room Rate (ARR) Revenue Per Available Room (RevPar) Occupancy (OCC)
8.4%
7.2%
5.1%
0.7%
6.9%
8.1%
5.3%
4.3%5.4%
3.9% 6.8%
1.1%
Excluding Centara Grand SamuiIncluding Centara Grand Samui
Maldives portfolio
17Hotel Business Overview Page 17
Q2/19 RevPar (USD) -3.5% from ARR
14,837
17,421
12,011
14,967
81.0%
85.9%
50%
55%
60%
65%
70%
75%
80%
85%
90%
0
5,000
10,000
15,000
20,000
25,000
Q2/19 6M19
Average Room Rate (ARR) Revenue Per Available Room (RevPar) Occupancy (OCC)
3.6%
7.1%
6.1%
4.3%
1.6%
3.1%
3.3%3.5%380 USD 473 USD
Hotel revenue breakdown by region
Page 18
32.5%
16.8%15.9%
12.6%
6.8% 6.7% 6.4%2.3%
32.9%
17.6%15.9%
12.7%
7.4% 5.1% 6.2%2.2%
Bangkok Maldives Phuket Pattaya Hua Hin Samui Krabi Others
6M18 6M19
Total revenue
6M19 Bangkok Maldives Phuket Pattaya Hua Hin Samui Krabi Hat Yai Tak
% RevPar Growth yoy -6.4% -3.6% -7.1% -7.3% 2.9% -21.7% -7.3% 1.2% -8.4%
Hotel Business Overview
done82% of hotel revenue from Thailand
-8.3%Excluding Centara Grand Samui
Food business
overview
Q2/19: Portfolio of 1,007 outletsNet expansion of 99 outlets (or +10.9% yoy), mainly from top 3 brands
Page 20Food Business Overview
Bangkok Non-Bangkok
65% Non-Bangkok
65% Non-Bangkok
Brands # of outlets Change yoy
KFC 272 +25
Mister Donut 364 +26
Auntie Anne’s 173 +22
Ootoya 46 +3
Pepper Lunch 41 +6
The Terrace 9 +1
Chabuton 19 +3
Yoshinoya 21 +4
Tenya 11 +5
Katsuya 28 +0
Cold Stone 18 -1
Aroi Dee 4 +4
Suki House 1 +1
Total 1,007 +99
Number of outlets by location Revenue contribution by location
Food business performance Growth from outlet expansion
Page 21Food Business Overview
3,052 3,225
5,8446,112
396364
737 686
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Q2/18 Q2/19 6M18 6M19
Total Revenue EBITDA
8.2%
5.7%
6.9%
4.6%
11.2%
Unit: THB mn
EBITDA margin 11.3%13.0% 12.6%
SSS & TSS Improvement quarter on quarter
Page 22Food Business Overview
Same store sale (SSS) and Total system sale (TSS) Same store sale (SSS): Bangkok vs Non-Bangkok
-0.9%
3.3%
-1.7%
-4.1%
-1.7%
0.2%
-2.9%
0.5%
2.1%
-1.7%
-3.6%
-1.8%
-0.5%
-2.7%
-5.0%
-4.0%
-3.0%
-2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
Bangkok Non-Bangkok
0.0%
2.6%
-1.7%
-3.8%
-1.8%
-0.3%
-2.8%
10.0%
12.5%
6.5%
3.4%
5.7%
9.0%
4.6%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
SSS TSS
2Q18
2Q18
3Q18
3Q18
4Q18
4Q18
1Q19
6M18
2Q19 6M18 6M19
1Q19 2Q19 6M19
Q2/19 food total revenue breakdown
Page 23
KFC, 57%
Mister Donut, 14%
OOTOYA, 8%
Auntie Anne's, 7%
Others, 14%
6M19
Food Business Overview
Light food showed improving trend in Q2
(+7.4% yoy)
(+5.3% yoy)
(+3.7% yoy)
(+6.5% yoy)
(-8.6% yoy)
KFC, 56%
Mister Donut, 15%
OOTOYA, 7%
Auntie Anne's, 7%
Others, 15%
Q2/19
(+7.3% yoy)
(+7.6% yoy)
(+6.1% yoy)
(+9.0% yoy)
(-3.7% yoy)
CAPEX &
GUIDANCE 2019
3-year capital expenditure : THB 27bn
Page 25
-
2,000
4,000
6,000
8,000
10,000
12,000
2018A 2019E 2020E 2021E
Hotel Food Potential projects
Sufficient funding with loan/bond & operating cashflow
Financial Highlight
2020E2019E 2021E
Centara Grand Central World
Renovation
&
Enhancement
New
Investment
&
Expansion
Centara Grand
SamuiCentara Grand Hua Hin*
New investment in food brand(s) & hotel(s)*
Food outlet expansion
2 new Centara Maldives
Centara Dubai
COSI Pattaya
COSI Chiang Mai
CAPEX (THB mn)
Annual renovation for existing hotels
Annual renovation for existing CRG’s outlets
Note: *potential projects are under feasibility study
…
CENTEL guidance 2019
Page 26Financial Highlight
2018A 2019E - Revised
Hotel
RevPar (THB) 3,786* -4% to -5% yoy(Excluding Centara Grand Beach Resort Samui and COSI Pattaya)
Food
TSS 9.3% 5% to 7% yoy
Number of outlets 956 12% to 13% yoy
Hotel:
• Open COSI Pattaya 282 rooms in October
• Revise target as a result of 1H19 performance softer than
expectation and uncertain tourists rebound in 2H19
Food:
• Outlet expansion drives the growth
• Focusing on delivery through own platform and food
aggregators
• Expansion of 2 new own brands:
• “Aroi Dee” targets to open 7-10 more outlets
• “Suki House” targets to open 2-3 more outlets
*Included COSI Samui and Centra Chaeng Watthana
Recovery in hotel business remains to be seen & high competition in food business
Q&A
27Page 27Q&A
More Information please Contract: Investor Relations department
Central Plaza Public Company Limited25th Fl, Centara Grand at CentralWorld999/9 Rama I Rd., PathumwanBangkok 10330 Thailand
https://investor.centarahotelsresorts.com/ [email protected]
Disclaimer
This presentation contains certain forward looking statements. Such forward looking statements are not guarantees of future
performance and involve risks and uncertainties, and actual results may differ from those in the forward looking statements
as a result of various factors and circumstances. The views, analyses and opinions expressed herein contain some information
derived from publicly available sources and third party information providers. No representation or warranty is made as to
the accuracy, completeness, or reliability of such information. This presentation should not be relied upon as any
recommendation, view, opinion, representation or forecast of “Central Plaza Hotel Plc.” Nothing in this presentation should
be construed as either an offer to sell, a solicitation of an offer to buy or sell shares or any type of securities in any
jurisdiction. This presentation is not intended to be any type of investment advice and must not be relied upon as such. You
must always seek the relevant professional advice before otherwise making any such financial, legal or commercial decisions.
28Page 28
Appendix
Hotel revenue by asset type (Freehold & Leasehold)
Page 30Appendix
0.9
9.5
13.5
34.3
0
5
10
15
20
25
30
35
40
Centara
Grand Hua
Hin
Centara
Grand
Ladprao
Centara
Grand Central
World
COSI Samui
Re
ma
inin
g Y
ea
rs
Remaining leasehold life for
Thailand hotels as at June 30, 2019
CHBR
7% CGLB
10%
CGCW
20%
37%
46%
17%
2018 hotel revenue
Thailand freehold
Thailand leaseholdMaldives leasehold
Page 31Appendix
Hotels in operation as at June 30, 2019 (1/3)
Owned hotels Stars Opened # of Rooms % Ownership Location
1 Centara Grand at Central Plaza Ladprao Bangkok 5 2Q83 565 100% Thailand
2 Centara Grand Resort & Villas Hua Hin 5 1Q86 249 64% Thailand
3 Centra by Centara Hotel Mae Sot* 3 4Q89 120 100% Thailand
4 Centara Hat Yai 4 4Q95 248 100% Thailand
5 Centara Grand Beach Resort Samui 5 2Q96 203 25% in Property Fund Thailand
6 Centara Villas Samui 4 2Q00 102 100% Thailand
7 Centara Villas Phuket 4 2Q00 72 100% Thailand
8 Centara Grand Beach Resort & Villas Krabi 5 4Q05 192 100% Thailand
9 Centara Kata Resort Phuket 4 2Q06 163 100% Thailand
10 Centara Karon Resort Phuket 4 2Q06 335 100% Thailand
11 Centara Grand at CentralWorld 5 4Q08 512 100% Thailand
12 Centara Grand Mirage Beach Resort Pattaya 5 4Q09 555 100% Thailand
13 Centara Grand Island Resort & Spa Maldives 5 4Q09 112 74% Maldives
14 Centara Grand Beach Resort Phuket 5 4Q10 262 100% Thailand
15 Centara Ras Fushi Resort & Spa Maldives 4 1Q13 140 75% Maldives
16 COSI Samui Chaweng Beach Affordable lifestyle 4Q17 150 100% Thailand
17 Centra by Centara Government Complex Hotel &
Convention Centre Cheang Watthana
3 4Q12 212* 100% Thailand
Total owned hotels 4,192
*after renovation since April 2019
Page 32Appendix
Hotels in operation as at June 30, 2019 (2/3)
Managed hotels Stars Opened # of Rooms Country
18 Centara Chaan Talay Resort & Villas Trat 4 1Q08 44 Thailand
19 Centara Hotel & Convention Centre Udon Thani 4 2Q10 259 Thailand
20 Centara Q Resort Rayong 4 2Q10 41 Thailand
21 Khum Phaya Resort, Centara Boutique Collection Boutique 3Q10 87 Thailand
22 Waterfront Suites Phuket by Centara Residence 1Q11 39 Thailand
23 Centara Anda Dhevi Resort & Spa Krabi 4 4Q11 135 Thailand
24 Centara Pattaya Hotel 4 4Q11 152 Thailand
25 Centara Nova Hotel & Spa Pattaya 4 4Q11 79 Thailand
26 Centara Koh Chang Tropicana Resort 4 2Q12 157 Thailand
27 Centra Coconut Beach Resort Samui 3 3Q12 55 Thailand
28 Sandy Beach Non Nuoc Resort Danang Vietnam Managed by Centara 4 4Q12 204 Vietnam
29 Centara Watergate Hotel & Spa Bangkok 4 2Q13 281 Thailand
30 Centara Seaview Resort Khao Lak 4 2Q13 250 Thailand
31 Centara Grand Phratamnak Pattaya 5 3Q13 161 Thailand
Page 33Appendix
Hotels in operation as at June 30, 2019 (3/3)
Managed hotels Stars Opened # of Rooms Country
32 Centara Blue Marine Resort & Spa Phuket 4 1Q14 266 Thailand
33 Centara Ceysands Resort & Spa Srilanka 4 2Q14 165 Sri Lanka
34 Centra by Centara Avenue Hotel Pattaya 3 4Q14 51 Thailand
35 Centra by Centara Maris Resort Jomtien 3 1Q16 282 Thailand
36 Centra by Centara Phu Pano Resort Krabi 3 4Q16 158 Thailand
37 Centara Azure Hotel Pattaya 4 4Q16 96 Thailand
38 Centara Muscat Hotel 4 2Q17 152 Oman
39 Centara West Bay Residences & Suites Doha Residence 4Q18 265 Qatar
40 Centara Sonrisa Residence and Suites Sriracha Residence 2Q19 145 Thailand
Total managed hotels 3,524
Grand total 7,716
Thank You