OPPORTUNITY DAY’S PRESENTATION - listed companycentel.listedcompany.com/misc/presentations/AnalystPresentation_q... · Opportunity day - 3 Dec 2010 Page 3 ... negative impact of

OPPORTUNITY DAY’S PRESENTATIONCentral Plaza Hotel Plc. 3 December 2010

Disclaimer Disclaimer

Opportunity day - 3 Dec 2010 Page 2

AgendaAgenda

Analysis of Financial PerformanceIndustry OutlookyBusiness Performance

QSR B iQSR BusinessHotel Business

Capex & Financial Plan


Analysis of Financial Performance


3Q10 Financial Snapshot3Q10 Financial SnapshotTotal Revenue

1 000

2,000

3,0002,321 2,525

2,041 2,154• Total revenue increased 9.6% toBt 2,154m, primarily due to thesustained and strong growth (18.2%

Total Revenue

0

1,000

4Q09 1Q10 2Q10 3Q10Hotel QSR Others*

g g ( %YoY) of Food Business, while HotelsBusiness showed a slight decline of0.9% YoYHotel QSR Others

Profit & Loss 3Q10 3Q09 %Chg.

Note: Included management fee, amortization of deferred income, marketing support fund (CRG) etc.

• EBITDA of Bt 244.2m decreased3.0%• Consolidated net loss to Bt 143m a

Hotel Total Revenue (Btm)* 882.1 890.1 -0.9%

QSR Total Revenue (Btm)* 1,271.6 1,075.6 18.2%

result of poor performance of hotelbusiness especially from CGCW notyet back to normal full operation

EBITDA (Btm) 244.2 251.8 -3.0%

Net Profit (Btm) (143.0) (166.2) 14.0%

EBITDA Margin 11.3% 12.8%

plus an increase of depreciationand interest expense from fulloperation of CMBR


Note: Included other incomesOpportunity day - 3 Dec 2010 Page 5

9M10 Financial Snapshot9M10 Financial Snapshot

Total Revenue

2,0004,0006,0008,000

6,115 6,720 • Total Revenues of Bt 6,720m, growth 9.9% y-y, an increase contributed by hotel business of 7.9% and QSR

Total Revenue

02,000

9M09 9M10Hotel QSR Others*

hotel business of 7.9% and QSR business of 11.4% y-y • EBITDA totaling of Bt 1,112.2m, an increase of 9.7% y-y mainly due to

Profit & Loss 9M10 9M09 %Chg.

H t l T t l R 2 924 5 2 709 4 7 9%

Note: *Included management fee, amortization of deferred income, marketing support fund (CRG) etc.

y y yeffective cost management of QSR• Consolidated net loss to Bt141.9m -resulting mainly from the significant

Hotel Total Revenue (Btm)**

2,924.5 2,709.4 7.9%

QSR Total Revenue (Btm)**

3,795.0 3,405.5 11.4%

negative impact of the local political riots as well as partly from the added depreciation & amortisation costs and

EBITDA (Btm) 1,112.2 1,014.1 9.7%

Net Profit (Btm) (141.9) 0.3 na

EBITDA M i 16 6% 16 6%

increased interest expenses relating to the newly opened (late last year) Centara Grand Mirage Beach


Note: *Included other incomesResort, Pattya.


Industry Outlook


Tourism Industry Reviewy

Lingering impact from political chaos in 2Q10 coupled with the severe flood in 4Q10

Number of tourists % OCC

Lingering impact from political chaos in 2Q10, coupled with the severe flood in 4Q10especially in Southern provinces. Despite these issues, we expected the tourism toThailand to rebound to normal level by 2Q11

3,328 3,6453 284

4,2564,660

3,69460.0%70.0%80.0%

4,0004,5005,000

% Os

Number of tourists % OCC

,2,964

3,2842,857

49%53%

42%47%

54%61%

39%48%

30.0%40.0%50.0%60.0%

1 5002,0002,5003,0003,500

Occupancy

'000

tour

ists

0.0%10.0%20.0%

0500

1,0001,500

4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10

Total 9M/10 = 11.2 Mil. tourists

4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10April RiotBKK April

DisclosureTourist Arrival improve mainly due to World’s Economy Recovery

Negative FactorsEuropean Debt ProblemVolcano Eruption in IcelandThailand Political Unrest

Source: Bank of Thailand, Tourist Authority of Thailand


Tourist Arrivals Growth

Good start for the 1Q10 but adversely impact during the riot in 2Q10 However

41.9% 50.0%2010 2009

Good start for the 1Q10, but adversely impact during the riot in 2Q10. However number of tourists quickly rebound took around 2 months back to positive growth again

26.4%16.3% 14.2% 16 9% 26 5%

45.6%

20 0%

30.0%

40.0%

50.0%

2.1%

-12.9%

-1.1%

14.2%8.9%

14.5%

16.9%

10.5%

26.5%

0.0%

10.0%

20.0%

12.9%

-11.7%

-23.2%

-12.1% -11.2%

-21.2%-17.3% -14.2%

-5.4%

-30.0%

-20.0%

-10.0%

Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.

Source: Bank of Thailand, Tourist Authority of Thailand


Thailand’s Hotels vs. CENTEL’s

72.6% 74.2%90%

CENTEL’s occupancy rate maintains its outperformance compared to overall Thailand’s

55 1% 55 9%60.2%

65.7%57 2%

55.0%63.1% 63.9% 65.8% 66.8%

57.0%

43.7% 43.5%

53.9% 53.9% 52.2%60%

46.7%51.2%

55.1% 55.9% 57.2%

46.0%

34.4% 37.4%

46.9% 50.0% 48.2%

30%

0%

Industry Overall CENTELSource : Bank of Thailand, CENTEL


Marketing SituationMarketing Situation

According to latest TAT reports, tourist arrivals are set to rise in 2011, even in Q4/2010 however many still question their validity and indeed the changing market mix to more Asian guests with much and indeed the changing market mix to more Asian guests with much shorter average stays is also a major course for concern as room stock continues to rise.

Whilst political issues have now subsided, there is still an underlying concern that Thailand will see a return to action and demonstration in the future which will deter some travelers from the destinationin the future which will deter some travelers from the destination.

The rise of the Thai baht is also a major area of concern, especially from source markets with Euro, Sterling or US dollar based , gcurrencies. Regardless of room rate changes from CHR, prices to the customer have increased by between 10 to 20% due to exchange rate changes rate changes.


As reported – The Nation from Thai H l A i i Hotel Association

Overall room rates of Thai hotels dropped by 15-30% from three years ago, indicating operators pricing war amid the prolonged political conflict and current flooding

According to Thai Hotel Association, local hotels rate were frozen since 2008 and getting worse in this year when political problem took a sharp 2008 and getting worse in this year when political problem took a sharp turn

In Nov 2010, Bangkok luxury hotels are to report average room rate of US$ 70 (Bt 2,050) per night which significantly low compared to regional operator in HK and Singapore of US$ 200

Competition for online market also took place as reported by Wotif Group Competition for online market also took place as reported by Wotif Group that hotels in Thailand, Australia, Cambodia, Singapore, and Vietnam had lowered their rates for December prior the season


Consumers’ Price Index change y-yg y y

Thailand’s CPI continued its strengths though-out the year despite some domestic disturbance in 2Q

3.54.1 3.7 3.4 3.0 3.5 3.3 3.4 3.3 3.0 2 8

-0.4 -0.1 -0.2 -0.9 -1.0 -1.00.4

1.93.0 3.0 2.8

M M N

-3.3-4.0 -4.4

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2009 2010Source : Bank of Thailand, CENTEL


Business Performance


QSR Business


QQ310 310 QSR QSR Sales BreakdownQQ310 310 QSR QSR Sales Breakdown

QQ33//2009 2009 Sales BreakdownSales Breakdown

CBT

QQ33//2010 2010 Sales BreakdownSales Breakdown

BP0.3%

KFCAA

BR1.8%

BRT3.4%

PL 1.4%

CSC0.4%

BP1.2%PL

1.7%

CBT0.7%

CSCW3.3%

RYU0.4%

58.3%AA

8.2%KFC59.8%

3.3%

AA8.3%

MD26.7%

MD24.2%

Sales 1,069.1 MB.Sales 1,262.1 MB.+ 18.1%


33QQ10 10 QSR Performance by Brand QSR Performance by Brand 33QQ10 10 QSR Performance by Brand QSR Performance by Brand

TSS (%)TSS (%) SSS (%)SSS (%)TSS (%)TSS (%) SSS (%)SSS (%)

QQ33//1010 QQ33//0909 Chg.Chg. QQ33//1010 QQ33//0909 Chg.Chg.

KFCKFC 20.8 -2.9 23.7 21.4 -8.0 29.4

MDMD 6 7 7 8 1 1 0 6 0 3 0 9MDMD 6.7 7.8 -1.1 -0.6 0.3 -0.9

AAAA 19.3 1.4 17.9 12.9 -12.1 25.0

PLPL 46.1 49.3 -3.2 26.2 -28.8 55.0

BPBP 295 9 na na 24 6 na naBPBP 295.9 na. na. 24.6 na. na.

AverageAverage 18.1 -6.4 24.5 14.5 -6.6 21.1

Opportunity day - 3 Dec 2010Remark : In 2009, included Pizza Hut and Baskin Robbins’ business

Page 17

99MM10 10 QSR QSR Sales Breakdown99MM10 10 QSR QSR Sales Breakdown

99M/M/2009 2009 Sales BreakdownSales Breakdown99M/M/2010 2010 Sales BreakdownSales Breakdown

BP0.2%

KFCPH

2 7%

BR2.1%

BRT3.3%

PL 1.3%CSC

0.2%

BP0.8%

PL 1.5%

CBT0.4%

CSCW3 2%

RYU0.2%

KFC56.5%

AA8.0%

2.7%KFC

60.3%

3.2%

AA8.7%

MD25 9%MD 25.9%

Sales 3,389.0 MB.Sales 3,770.6 MB.

24.8%

+ 11.3%


99MM10 10 QSR Performance by Brand QSR Performance by Brand 99MM10 10 QSR Performance by Brand QSR Performance by Brand

TSS (%)TSS (%) SSS (%)SSS (%)

99M/M/1010 99M/M/0909 Chg.Chg. 9M/109M/10 99M/M/0909 Chg.Chg.

KFCKFC 18.3 -0.5 18.8 18.3 -6.9 25.2

MDMD 6 3 5 1 1 2 2 1 1 2 0 9MDMD 6.3 5.1 1.2 -2.1 -1.2 -0.9

AAAA 20.9 3.1 17.8 10.3 -9.5 19.8

PLPL 30.1 60.2 -30.1 6.0 -31.1 37.1

BPBP 359 7 na na 27 0 na naBPBP 359.7 na. na. 27.0 na. na.

AverageAverage 11.3 -2.4 13.7 11.7 -5.9 17.6

Opportunity day - 3 Dec 2010

Remark : In 2009, included Pizza Hut and Baskin Robbins’ businessPage 19

SSS, TSS MovementSSS, TSS MovementSSS, TSS MovementSSS, TSS Movement

14 5%18.1%20%

SSS TSS

11.4%8.5%

14.5%

8.7%7.8%

5%

10%

15%

wth

-2.4%-5%

0%

5%

Q3/09 Q4/09 Q1/10 Q2/10 Q3/10% G

row

-6.6%-5.2%-6.4%

-15%

-10%

-20%

Remark : In 2009 incl ded Pi a H t and Baskin Robbins’ b sinessRemark : In 2009, included Pizza Hut and Baskin Robbins’ business


QSR’s Number of OutletsQSR s Number of Outlets

N f O tl tN f O tl t O tl t O tl t 33QQ0909 33QQ1010No. of OutletsNo. of Outlets33QQ1010 33QQ0909 Chg.Chg.158 154 +4 510

Outlets : Outlets : 33QQ0909--33QQ1010

158 154 +4240 223 +1781 83 -2 501

500

510

++1919ets

7 5 +29 1 +8

482480

490

o. o

f ou

tle

1 0 +11 0 +14 0 4

482

470

480

No

4 0 +4BRBR 0 16 -16

460Q3/09 Q3/10


QSR’s Product HighlightsQSR s Product Highlights


Launching new brand “Café Andonand”g

The well-known premium donut brand from The well-known premium donut brand from Japan established in 2007 by Duskin Co., Ltd. (The company owned of Mister Donut)

In November 2010, Café Andonand has In November 2010, Café Andonand has opened 6 outlets in Japan.

The first shop was launched at Central World under “Premium Japanese Café” pconcept.

Showcase at Yokohama Shop


Café AndonandCafé Andonand

Offer varieties of menu items and all donuts & bakeryOffer varieties of menu items and all donuts & bakery


S i h fi ff b f h b l i i h ld d fi d h b Serving the finest coffee beans from the best plantations in the world and find the best ingredients for our donuts, which are served hot!!


Now open @ Central World




QSR’s Pipeline ExpansionQSR s Pipeline Expansion

Our QSR business strategy is to enhance sales via alternative channels with our Our QSR business strategy is to enhance sales via alternative channels with our established brand footprint in the region while actively adding quality brands through both organic and acquisition

Category 2010 2011 2012 2013 2014

Existing Brand 45 29 29 20 21

New Brand 8 11 14 20 18

Total 53 40 43 40 39

Existing BrandOperated in Year 2009

New BrandRecently added in Year 2010 and future

……….


Hotel Business


3Q10 Hotel business Performance3Q10 Hotel business Performance

Hotel operation improved from 2Q10 by 5.2% and 1.0% q-q increase in OCC and ARR to 53.2% and Bt2,834 respectively thanks to good performance especially in Pattaya and Hat Yai

Hotel%OCC ARR (Bt./night) RevPar (Bt.)

3Q10 Chg. 3Q10 %Chg. 3Q10 %Chg.3Q10 Chg. 3Q10 %Chg. 3Q10 %Chg.

Overall 53.2 -3.6 2,834 -1.2% 1,508 -7.5%

• Grand 54.0 ‐3.5 3,643 4.1% 1,967 ‐2.3%

• Centara 51.8 ‐3.7 1,591 ‐2.9% 824 ‐9.4%

• Owned 52.3 ‐2.7 2,846 ‐1.0% 1,489 ‐5.9%

• JV & Managed 56 3 6 1 3 522 23 5% 1 983 11 4%• JV & Managed 56.3 ‐6.1 3,522 23.5% 1,983 11.4%


9M10 Hotel business Performance9M10 Hotel business Performance

f 9MEven severe impact from political chaos in 2Q10, Our hotel 9M y-yperformance increased both in term of occupancy rate and room rate by0.8% and 2.4% y-y to OCC 57.6% and ARR Bt3,330 respectively. The

i l d i b fi t f ll ti f CMBR

Hotel%OCC ARR (Bt./night) RevPar (Bt.)

9 0 Ch 9 0 %Ch 9 0 %Ch

mainly driven by first full year operation of CMBR.

9M10 Chg. 9M10 %Chg. 9M10 %Chg.

Overall 57.6 0.8 3,330 2.4% 1,917 3.8%

• Grand 57.0 -1.7 4,181 5.7% 2,385 2.7%, ,

• Centara 58.6 -1.8 2,106 2.5% 1,235 -0.4%

• Owned 55.6 ‐1.2 3,337 2.8% 1,856 0.7%

• JV & Managed 63.4 ‐3.6 4,018 23.1% 2,549 16.4%


Newly Owned HotelNewly Owned Hotel

Centara Grand Brach Resort Phuket

Located on the most secluded part of Karon beach

All 262 rooms, suites and villas feature a furnished balcony or terrace facing the Andaman Seaterrace facing the Andaman Sea

Accommodations of a minimum of 52 sq m, many featuring their own outdoor Jacuzzi or private pooloutdoor Jacuzzi or private pool

Water park with a lazy river, 4 swimming pools, children pool,

t lid t f ll J i water slides, waterfalls, Jacuzzi and other aquatic activities


Newly Managed Hotels (1)Newly Managed Hotels (1)

C G d R & S BCentara Grand Resort & Spa Boracay

At Fairways & Bulewater

Pristine location with direct access to Pristine location with direct access to powder white sand

Only 45 minutes from Manila or CebuCebu

264 rooms, suites and villas

The only 18-hole golf course on the island designed by Graham Marsh

Business Centre with conference and meeting facilities that can hold up to g p500 guests

Infinity pool with stunning views over the Sibuyan Seathe Sibuyan Sea


Newly Managed Hotels (2)Newly Managed Hotels (2)

Khum Phaya Resort & Spa, Centara

Boutique Collection at a glances

Traditional Lanna st le propert Traditional Lanna style property offering a true resort experience in the heart of the city

87 rooms and villas

Spa Cenvaree facility with guest villas having their own spa room

Jacuzzi, bathtub and rain shower in every unit

A wide range of conference and A wide range of conference and meeting facilities

Complimentary shuttle service to j imajor attractions


Newly Managed Hotels (3)C t A hl H t l P t t l

Newly Managed Hotels (3)Centra Ashlee Hotel Patong at a glance

Excellent location, one block away from the beach front and within the heart of Patong’s shopping and heart of Patong s shopping and entertainment district110 contemporary design roomsS d T Spacious guestrooms provide Twin- or King-size beds plus full size sofa, accommodating up to 2 adults plus 2 childrenchildrenRooftop swimming pool complete with its Jacuzzi and sun terraceGreat food and innovative Great food and innovative refreshments to be found at the all-day-dining restaurant and at the air rooftop bar and loungep g


Newly Managed Hotels (4)

C S ddi P R Ph k

Newly Managed Hotels (4)

Centara Sawaddi Patong Resort Phuket

The vibrancy of Patong is only a short walk away where one will find numerous shopping, dining and entertainment experiences

148 contemporary design rooms and p y gsuites

Supported by a team of highly professional therapists, the Spa Cenvareeprofessional therapists, the Spa Cenvareeoffers a blend of the best of western and Thai massage in treatment rooms for one or two personsp

Complimentary scheduled shuttle bus service to Patong Beach and Shopping CentreCentre


New Managed Hotels in PipelineNew Managed Hotels in Pipeline

Category 2010 2011 2012 2013 2014Category 2010 2011 2012 2013 2014

5 - StarsSokhna, Egypt /120 rms Vietnam/ 196 rms

Boracay, Phillipines / 264 rms

4 - StarsH OT E L S & R E S O RT S H OT E L S & R E S O RT S H OT E L S & R E S O RT S

Patong Phuket/ 146 rms Khonkaen / 196 rooms

Manila/96 rooms

Hua Hin/ 156 rooms

Limited 4 - Stars

H OT E L S & R E S O RT S

Patong Phuket/ 106 rms Pattaya Resort/158 rms

Sukumvit / 79 rms

Pattaya/ 79 rooms

Boutique & Residences As tudo 8 hotels/176 rms Pattaya/160 rms K h K d / 40

Chiangmai/87 rms

Pattaya/160 rms Koh Kood / 40 rms


Capex & Financial Plan


Projected Cash flow & CAPEXProjected Cash flow & CAPEX

After opening of Centara Grand Phuket, Future CAPEX will be reviewed base on Cash flow from operation

40003,500

4,500

2000

3000

1,500

2,500

0

1000

500

500

2011* 2012 2013 2014 2015 0-500 2011 2012 2013 2014 2015

Total CAPEX EBITDA

Note: Include big renovation in SCGB of Bt 400m g


3Q10 CENTEL’s Interest Bearing Debt3Q10 CENTEL s Interest Bearing Debt

112 , 1% 910 , 10%62 , 1%155 , 2%

Bank OverdraftsS/T loans

999 , 11%

883 , 9%

2,203 , 23%S/T loansCurrent portion DebentureLong-term portion DebentureC t ti L/T L

3,997 , 43%Current portion L/T LoanLong-term portion L/T LoanCurrent portion PPFLong-term portion PPF

Total of Bt 9 321 4m Average Cost of Debt 3 26% Total of Bt 9,321.4m, Average Cost of Debt 3.26%

S/T Loan = Bt 1,022.0m (11.0%) L/T Loan = Bt 8,299.4m (89.0%)

Interest Bearing Debt / Equity 1.56X (3Q09 = 1.25X) /


Thank You

Opportunity day - 3 Dec 2010

CENTEL’s Hotel Portfolio as of 3Q10CENTEL s Hotel Portfolio as of 3Q10

Hotel Star Rms Hotel Star Rms

Owned + JV Hotels1

Centara Grand at CentralWorld5

5122

Sofitel Centara Grand Bangkok 5

565

Managed Hotels15 Centara Grand Beach Resort & Spa Sokhna 5 12016 Away Elephant Lodge & Resort Chaing Mai 4 4217g

3Sofitel Centara Grand Resort & Villas Hua Hin

5249

4Centara Grand Beach Resort Phuket

5262

5Centara Grand Beach Resort & Villas Krabi

5192

17 Centara Hotel & Convention Centre Udon Thani 4 25518 Centara Chaan Talay Resort & Villas Trat 4 4419 Centara Pariya Resort & Villas Koh Pha-Ngan 4 4420

Bhundhari Spa Resort and Villas Samui, A Centara Resort 4 124Centara Grand Beach Resort & Villas Krabi 1926

Centara Grand Mirage Beach Resort Pattaya 5

5557

Centara Grand Island Resort & Spa Maldives 5

1128

Centara Grand Beach Resort Samui5

202

21 Moksha Hilmalaya Spa Resort, 4 5022 Centara Duangtawan Hotel Chiang Mai 4 50623 Centara Patong Resort Phuket 4 14624 X2 Hua Hin KUI buri Villas by Design Boutique 23Centara Grand Beach Resort Samui 202

Total 5 stars - Owned + JV 2,649 9

Centara Villas Phuket4

7210

Centara Kata Resort Phuket4

158

X2 Hua Hin KUI buri Villas by Design Boutique 2325 Away Hua Hin, Centara Boutique Collection Boutique 626 The Bayburi Vacation Villas Hua Hin Boutique 427 X2 Rayong Resort by Design Boutique 1328Centara Kata Resort Phuket 158

11Centara Karon Resort Phuket

4335

12Centara Mae Sot Hill Resort

4113

13N t l C t H t Y i

4245

28 Away Koh Kood, Centara Boutique Collection Boutique 3429 X2 Samui Villas by Design Boutique 2730 The Sea Samui Vacation Residences Residences 2731 Centara Grand Beach Resort & Spa Boracay, Phillipines 5 264

Novotel Centara Hat Yai 24514

Centara Villas Samuii4

100

Total 4 stars - Owned + JV 1,023

32 Centra Ashlee Hotel Patong 3 10633 Khum Phaya Resort, Centara Boutique Collection Boutique 87

Total managed hotels 1,922Opportunity day - 3 Dec 2010

Documents

OPPORTUNITY DAY’S PRESENTATION - listed companycentel.listedcompany.com/misc/presentations/AnalystPresentation_q... · Opportunity day - 3 Dec 2010 Page 3 ... negative impact of