Quarterly Meeting # 3/2016 - listed companyerw.listedcompany.com/misc/analystmeeting/20160816-erw... · 2016-08-16 · Grand Total 100% 100% ... Target Opening : 4Q16 On Schedule

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.


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 Q & A

3 Outlook

Agenda

1 Industry Update

2 Performance Review 2Q16 & 1H16


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%


Tourist Arrivals by Quarter


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



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



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%


4 Q & A

3 Outlook

Agenda

1 Industry Update



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


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


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%


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%


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%


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


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

)


4 Q & A

3 Outlook

Agenda

1 Industry Update



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%

19 © 2016 ERAWAN. All rights reserved. Strictly Private and Confidential

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


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


4 Q & A

3 Outlook

Agenda

1 Industry Update



Appendix

2Q16 & 1H16 Review


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%


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%


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%


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%


Success with Integrity

Documents

Quarterly Meeting # 3/2016 - listed companyerw.listedcompany.com/misc/analystmeeting/20160816-erw... · 2016-08-16 · Grand Total 100% 100% ... Target Opening : 4Q16 On Schedule