Quarterly Meeting # 3/2016 - listed...
Transcript of Quarterly Meeting # 3/2016 - listed...
Quarterly Meeting # 3/2016
2Q16 & 1H16 Performance & Outlook
16 August 2016
2 © 2016 ERAWAN. All rights reserved.
The views expressed here contain some information derived from publicly available sources
that have not been independently verified. No representation or warranty is made as to the
accuracy, completeness or reliability of the information. Any forward looking information in
this presentation has been prepared on the basis of a number of assumptions which may
prove to be incorrect. This presentation should not be relied upon as a recommendation or
forecast by The Erawan Group PLC. Nothing in this release should be construed as either
an offer to sell or a solicitation of an offer to buy or sell shares in any jurisdiction.
3 © 2016 ERAWAN. All rights reserved.
Executive Summary
International tourist arrivals grew in all key source
markets at 8% in 2Q16 and 12% in 1H16, posted the
record high of tourist arrivals ever.
Turnaround from Net Loss at 24 MB in 2Q15 to Net Profit
at 17 MB in 2Q16
Our hotel development progressed as planned,
+2 HOP INN resulting to 19 HOP INN or 37 hotels
(5,984 rooms) at the end of 2Q16.
4 © 2016 ERAWAN. All rights reserved.
4 Q & A
3 Outlook
Agenda
1 Industry Update
2 Performance Review 2Q16 & 1H16
5 © 2016 ERAWAN. All rights reserved.
International Tourist Arrivals
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec
2013 YTD 13.07 M 2014 YTD 11.47 M
2015 YTD 14.81 M 2016 YTD 16.59 M
YoY 2015-2016
Millions
YTD 16.59 millions, +12% y-y
Source : Department of Tourism as of Jun-16
+15% +16% +15% +10% +8% +7%
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Tourist Arrivals by Quarter
Source : Department of Tourism as of Jun-16
7.0
6.1
6.6 7.0
6.4
5.1
5.8
7.5 7.9
7.0 7.3
7.8
9.0
7.6
Q1 Q2 Q3 Q4
2013 2014 2015 2016
1Q and 2Q 2016 posted the record high of tourist arrivals ever
7 © 2016 ERAWAN. All rights reserved.
Source : Department of Tourism as of Jun-16
Tourist Arrivals by Source Markets
East Asia 67%
Europe 19%
The Americas
4%
South Asia 4%
Oceania 3%
Middle East 2%
Africa 1% Continent
2Q16
YoY
1H16
YoY
East Asia 8% 13%
Europe 11% 11%
The Americas 12% 14%
South Asia 8% 9%
Oceania 3% 1%
Middle East 4% 6%
Africa 1% 6%
Total 8% 12%
1H16 Contribution
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Source : Department of Tourism as of Jun-16
Tourist Arrivals by Key Source Markets
1H15
Weight
1H16
Weight
YTD-16
Y-Y
1H16
3Y/CAGR
China 27% 30% 21% 28%
Malaysia 12% 10% 1% 7%
South Korea 4% 4% 13% 5%
Japan 5% 4% 2% 2%
Laos 4% 4% 25% 11%
India 4% 4% 12% 3%
Russia 3% 3% 19% 15%
United Kingdom 3% 3% 10% 4%
Singapore 3% 3% 3% 3%
United States 3% 3% 15% 6%
Other 34% 32% 8% 4%
Grand Total 100% 100% 12% 8%
9 © 2016 ERAWAN. All rights reserved.
4 Q & A
3 Outlook
Agenda
1 Industry Update
2 Performance Review 2Q16 & 1H16
10 © 2016 ERAWAN. All rights reserved.
Statistic Summary 2Q16 & 1H16
OCC RevPAR OCC RevPAR
Luxury 1% 4% 2% 5%
Midscale 3% 5% 4% 6%
Economy 7% 3% 8% 0%
Budget 17% 33% 17% 39%
Total Group 5% 5% 6% 3%
Total Group excl. Budget 5% 2% 5% 4%
2Q16 1H16
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Core Performance Summary
(Unit in MB, unless otherwise indicated)
1,040 873 1,206 1,236
2Q13 2Q14 2Q15 2Q16
246 126
294 315
2Q13 2Q14 2Q15 2Q16
(74) (133)
(24)
2Q13 2Q14 2Q15 2Q16
2,653 2,772
1H15 1H16
EBITDA
Normalized Net Profit
784 847
1H15 1H16
115 190
1H15 1H16
2% YoY 4% YoY
1
7% YoY
65% YoY
8% YoY
Turnaround from Net Loss to Net Profit in 2Q16
Group Operating Income
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Hotel Revenue
2Q14 2Q15 2Q16
Luxury Segment
2Q14 2Q15 2Q16
Midscale Segment 4%
2Q14 2Q15 2Q16
Economy Segment
1%
2% Total Group
2Q14 2Q15 2Q16
Budget Segment 138%
2%
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Room Revenue by Country of Residence
Country 2Q16 1H16
Contribution Y-Y Contribution Y-Y
China 14% 10% 15% 22%
Thailand 18% 3% 14% 2%
United States 11% 6% 11% 7%
Singapore 6% 2% 6% 6%
Hong Kong 6% 12% 5% 7%
India 6% 3% 5% 2%
United Kingdom 3% 1% 4% 1%
South Korea 3% 20% 3% 19%
Germany 3% 1% 3% 7%
Russia 2% 147% 3% 60%
OTHER 29% 1% 31% 1%
GRAND TOTAL 6% 7%
1414 © 2016 ERAWAN. All rights reserved.
Consolidated Profit & Loss Statement
In Baht Millions 2Q15 2Q16 %Y-Y 1H15 1H16 %Y-Y
Hotel Income 1,155 1,183 2% 2.553 2.668 4%
Rental and Service Income 51 53 5% 100 104 4%
Total Operating Income 1,206 1,236 2% 2.653 2.772 4%
Other Income 12 14 27% 20 23 17%
Total Income 1,218 1,250 3% 2,673 2,795 5%
Operating Expenses (924) (935) 1% (1,889) (1,948) 3%
EBITDA 294 315 7% 784 847 8%
Share of Profit in ERWPF 5 5 13 13
ERWPF Rental Payment (28) (28) (56) (56)
Depreciation (179) (181) (357) (360)
Interest Expenses (96) (88) (195) (182)
Taxes (14) (16) (53) (59)
Minority Interest (6) (6) (21) (13)
Normalized Net Profit/(Loss) (24) 1 N.M. 115 190 65%
Non Recurring Items 16 19
Net Profit/(Loss) (24) 17 N.M. 115 208 81%
EBITDA Margin (%) 24.2% 25.2% 29.3% 30.3%
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0
4,000
8,000
12,000
16,000
FY2014 FY2015 2Q16
Baht Million
Total Assets
Summary of Financial Position
FY2014 FY2015 2Q16
Total Liabilities & Equity
ST Loan
LT Loan
Other Liabilities
Equity
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Debt to Equity Ratio
2.6
2.0 2.1
1.3
1.8 1.8 1.7
0.5
0.7
0.9
1.1
1.3
1.5
1.7
1.9
2.1
2.3
2.5
2.7
2.9
4,000
5,000
6,000
7,000
8,000
9,000
Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 2Q16
Interest-bearing Debt to Equity
TO
TA
L IN
ER
ES
T-B
EA
RIN
G D
EB
T (
MB
)
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4 Q & A
3 Outlook
Agenda
1 Industry Update
2 Performance Review 2Q16 & 1H16
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International Tourist Arrivals
11.6
13.8 14.5 14.6 14.1 15.7
19.1
22.3
26.5 24.8
29.9
34.0
0
5
10
15
20
25
30
35
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016F
Million
TSUNAMI Coup Protest Protest Protest Protest
Source : Department of Tourism as of Jul-16
Proven Resilience to Challenges
Protest
14%
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HOP INN #16 Roiet 79 rooms Opened in Jan 16
HOP INN #17 Chumphon 79 rooms Opened in Mar 16
HOP INN #18 Chanthaburi 75 rooms Opened in Apr16
HOP INN #19 Sakonnakhon 75 rooms Opened in Jun16
HOP INN #20 Chiangmai 75 rooms Target Opening : 3Q16 Opened in Aug16
HOP INN #21 Hatyai 79 rooms Target Opening : 4Q16 On Schedule
HOP INN #22 Phuket 79 rooms Target Opening : 4Q16 Ahead of Schedule
1 HOP INN Philippines 168 rooms Target Opening : 4Q16 On Schedule
Hotel Growth Strategy
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Northern (2 hotels) • Lampang
• Chiang Mai
Northeastern (8 hotels) • Khon Kaen
• Mukdahan
• Nakhon Ratchasima
• Nong Khai
• Roi Et
• Sakon Nakorn
• Ubon Ratchathani
• Udon Thani Western (2 hotels) • Tak - Mae Sod
• Kanchanaburi
South (7 hotels) • Chumphon
• Krabi
• Nakhon Si Thammarat
• Surat Thani
• Trang
• Hat Yai (open 4Q16) • Phuket (open 4Q16)
Eastern (2 hotels) • Chantaburi
• Sa Kaeo
Central (1 hotel) • Phitsanulok
22 HOP INN in Thailand By 2016
2121 © 2016 ERAWAN. All rights reserved.
4 Q & A
3 Outlook
Agenda
1 Industry Update
2 Performance Review 2Q16 & 1H16
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Appendix
2Q16 & 1H16 Review
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Operating Income by Segment
2Q16
Contribution Y-Y
Luxury 50% 2%
Midscale 25% 4%
Economy 17% 1%
Budget 4% 138%
Rental 4% 5%
Total Group 2%
1H16
Contribution Y-Y
50% 0%
24% 6%
19% 5%
3% 137%
4% 4%
4%
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Operating Income by Destination
2Q16
Contribution Y-Y
Bangkok 65% 3%
Pattaya 17% 7%
Phuket 6% 19%
Other 12% 24%
Total Group 2%
1H16
Contribution Y-Y
63% 0%
17% 7%
8% 17%
12% 22%
4%
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EBITDA by Segment
Note : • For illustration purpose only • EBITDA by Segment is calculated without taking non-property-specific expenses into account.
2Q16
Contribution Y-Y
Luxury 38% 1%
Midscale 32% 13%
Economy 17% 1%
Budget 6% 179%
Rental 7% 8%
Total Group 7%
1H16
Contribution Y-Y
41% 0%
28% 12%
21% 10%
4% 182%
5% 5%
8%
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EBITDA by Destination
Note : • For illustration purpose only. • EBITDA by Destination is calculated without taking non-property-specific expenses into account.
2Q16
Contribution Y-Y
Bangkok 65% 3%
Pattaya 17% 7%
Phuket 6% 19%
Other 12% 24%
Total Group 7%
1H16
Contribution Y-Y
63% 0%
17% 7%
8% 17%
12% 22%
8%
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