Download - SET Opportunity Day 2/2019 · Opening 9 Hotels Revenue Growth 7%-10%. ... Luxury Hotel Grand Hyatt Erawan Bangkok 380 1991 74%(1) ... Ibis Kata Phuket 258 Dec-09 100%

1Q19 Performance & Outlook

16 May 2019

SET Opportunity Day

2/2019

2 © 2019 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.


1Q19 Executive Summary

10.8 million

international tourist

arrival

1% Growth from 1Q18

Tourism Industry Hotels Statistic*

86% Occupancy with

-6% ARR growth

1Q Results

-1% Total Revenue

-7% EBITDA

-18% Net Profit

Hotel Development

*Total group ex. HOP INN

9 Hotels

To be opened

in 2H19


Industry Update


International Tourist Arrivals by Quarter

Source : Department of Tourism as of Mar-19

9.0

7.6

8.27.8

9.2

8.1

8.89.3

10.6

8.9 9.1

9.7

10.8

Q1 Q2 Q3 Q4

2016 2017 2018 2019

1%


0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec

2016 YTD 9.0 M 2017 YTD 9.2 M

2018 YTD 10.6 M 2019 YTD 10.8 M

YoY 2019-2018

International Tourist Arrivals

YTD-Mar19 10.8 millions, +1% y-y

Millions

Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec

+5% - -1% %YoY



Thailand Tourist Arrivals


1Q18

Weight

1Q19

WeightYoY

1. China 30% 29% 2%

2. Malaysia 8% 9% 8%

3. Russia 6% 6% 1%

4. South Korea 5% 5% 7%

5. Japan 4% 4% 9%

6. India 3% 4% 25%

7. Laos 4% 4% 2%

8. United States 3% 3% 4%

9. Germany 3% 3% 7%

10. France 3% 3% 3%

Others 32% 31% 1%

Grand Total 1%


Performance Review 1Q19


1Q19 Core Performance Summary

Group

Operating Income

EBITDA 658 561 612

286 180 235

1% YoY

Net Profit

YoY

1,776 1,701 1,758

1Q18 4Q18 1Q19QoQ

3% YoY

7% YoY

18% YoY

9% YoY

31% YoY


Statistic Summary 1Q19

Segment

1Q19 (YoY)

OCCARR

+/-

RevPAR

+/-

Thailand

Luxury 83% 5% 7%

Midscale 88% 6% 10%

Economy 87% 3% 7%

Total Group (ex HOP INN) 86% 6% 9%

HOP INN 73% 4% 2%

Philippines

HOP INN 75% 4% 4%

Remark : calculation in THB


Hotel Revenue by Room & F&B

(Unit in MB)

1% 6%

1,7191,702

1Q19

1% YoY

Bangkok hotels revenue still grew


1Q19 Performance Summary

• Luxury BKK occupancy was in line with 1Q18

but ARR was slightly dropped. In addition F&B

decrease due to the drop in MICE market

• Luxury resort recorded soft performance due to

slowdown of Chinese and European markets

and Pabuk storm in Jan-19

Luxury Revenue 8% Midscale Revenue 2%

Economy Revenue 1%

• ibis Styles Sukhumvit 4 opened in 4Q18 with

OCC >80% in this quarter

• Non BKK hotels were impacted from slowdown

of Chinese & Russian

HOP INN Revenue 8%

• Novotel Sukhumvit 4 opened in 4Q18 with

OCC >80% in this quarter

• Midscale BKK was impact from slowdown of

USA & Europe while Non-BKK was impacted

from slowdown of Chinese & India

• HOP INN room rate improvement at 4%

• The declined of occupancy rate was resulted

from pricing strategy and air pollution crisis in

northern of Thailand


RevPAR Total Revenue EBITDA

HOP INN Philippines

1Q19 Performance Growth

• Room rate increased 4% from 1Q18

• OCC posted at 75% in line with LY despite additional

531 room inventory

• Organic hotels posted RevPAR growth at 13% and

revenue growth at 14 %

• Generate net profit in 1Q19

1Q19 Performance Highlight

4%

183%

412%


Consolidate Profit & Loss StatementIn Baht Millions 1Q18 1Q19 %YoY

Hotel Operating Income 1,719 1,702 1%

Rental and Service Income 57 56 3%

Total Operating Income 1,776 1,758 1%

Other Income 10 17 75%

Total Income 1,786 1,775 1%

Operating Expenses (1,128) (1,163) 3%

EBITDA 658 612 7%

Depreciation & Amortization (183) (206)

Finance Costs (84) (96)

Taxes (71) (61)

Minority Interest (20) (17)

Normalized Net Profit / (Loss) 300 232 23%

Extraordinary Items

Share of Profit/(Loss) from ERWPF (14) 3 123%

Net Profit / (Loss) 286 235 18%

EBITDA Margin 36.9% 34.5% 2.4%


16,949 17,451

2018 1Q19

Total Assets

Summary of Financial Position

11,240 11,492

2018 1Q19

Total Liabilities

5,708 5,959

2018 1Q19

Total Equities

1.7 1.7 1.7 1.7 1.7

1.0

1.2

1.4

1.6

1.8

2.0

5,000

6,000

7,000

8,000

9,000

10,000

2015 2016 2017 2018 1Q19

Total Interest Bearing Debt (MB) & Interest-bearing Debt to Equity (x)

3.00%

4.00%

5.00%

6.00%

2015 2016 2017 2018 1Q19

Average Cost of Debt (%)

4.14%


Phuket, Kata

Outlook


Key Factors to Thailand Tourism Industry in 2H19

Chinese Recovery Election

Government Stimulus Package

Thai Baht Depreciation

Thailand Tourism Industry


2019 Outlook

Update 2019 Outlook

Tourist Arrival

41.1 Million

Occupancy Rate

~ 80%

2019 Hotel

Opening

9 Hotels

Revenue Growth

7%-10%


Hotels Growth Strategy

Return Enhancing Strategy

JW Marriott Room Renovation 3rd Phase 133 Rooms 2Q19-3Q19

JW Marriott F&B Outlet renovation Manho & Tsu 2Q19

Ibis Soft Renovation Patong, Samui, Sathorn 2Q19-3Q19

HOP INN Khon Kaen - Mittraphap Road (3rd Branches) 79 Rooms

Jul-19

HOP INN BKK - Changwattana 108 Rooms

HOP INN Rayong - Sukhumvit Road (2nd Branches) 79 Rooms

Aug-19

HOP INN Chiang Rai - Clock Tower (2nd Branched) 70 Rooms

HOP INN Hat Yai (2nd Branches) 79 Rooms

4Q19

HOP INN BKK - Rangsit 79 Rooms

HOP INN Nakorn Pathom 79 Rooms

Mercure Sukhumvit 24 201 Rooms

ibis Sukhumvit 24 300 Rooms


Erawan : 2019 Recap

Tourist arrival to Thailand is expected to increase 7.5% to 41.1 million in 2019. Confidence in long term growth of Thailand tourism Industry

Our hotel growth strategy create strong and diversify network and adding capacity to drive return

Return enhancement from asset improvement program

Target revenue growth 7-10% in 2019, adding 1,074 rooms from 9 hotels

1

2

3

4


Q & A


Success with Integrity


Appendix

1Q19 Review


1Q19 Hotel Statistic by Segment

Hotel Properties Rooms Occupancy ARR (Bt/room/night) RevPAR (Bt/room/night)

YoY 1Q18 1Q19 1Q18 1Q19 +/- LY 1Q18 1Q19 +/- LY 1Q18 1Q19 +/- LY

Thailand

Luxury 979 979 85% 83% 2% 6,325 5,978 5% 5,361 4,965 7%

Midscale 1,282 1,467 92% 88% 3% 3,146 2,945 6% 2,881 2,595 10%

Economy 2,253 2,386 91% 87% 4% 1,538 1,496 3% 1,393 1,296 7%

Total Group ex.HOP INN 4,514 4,832 90% 86% 3% 2,987 2,818 6% 2,676 2,434 9%

HOP INN Thailand 2,573 2,810 78% 73% 5% 574 600 4% 447 439 2%

Philippines

HOP INN Philippines 312 843 75% 75% - 960 996 4% 718 745 4%


Operating Income by Segment

1Q19

Contribution Y-Y

Luxury 44% 8%

Midscale 24% 2%

Economy 19% 1%

HOP INN Thailand 6% 8%

HOP INN Philippines 4% 183%

Rental 3% 3%

Total Group 1%


EBITDA by Segment

Note :• For illustration purpose only• EBITDA by Segment is calculated without taking non-property-specific expenses into account.

1Q19

Contribution Y-Y

Luxury 38% 16%

Midscale 25% 5%

Economy 22% 1%

HOP INN Thailand 7% 1%

HOP INN Philippines 4% 412%

Rental 4% -

Total Group 7%


ERW Room Revenue by Key Source Markets

Remark : Exclude Philippines

Key Source Markets1Q18

Weight

1Q19

WeightYoY

1. Thailand 15% 17% 10%

2. China 15% 15% 2%

3. United States 9% 10% -

4. Russia 7% 5% 23%

5. Singapore 5% 5% 5%

6. India 5% 5% 7%

7. Germany 4% 4% 11%

8. Hong Kong 4% 4% 4%

9. United Kingdom 3% 3% 3%

10. South Korea 3% 3% 7%

Other 30% 30% 2%


Category Hotel City Rooms Year Operate Ownership

Luxury Hotel Grand Hyatt Erawan Bangkok 380 1991 74%(1)

2 hotels | 821 rooms JW Marriott Bangkok 441 1997 100%

Luxury Resort Renaissance Koh Samui Samui 78 2005 100%

2 hotels | 158 rooms The Naka Island a Luxury Collection Phuket 80 Dec-08/Nov-17 100%

Midscale Hotel Courtyard by Marriott Bangkok 316 Nov-07 100%

3 hotels | 690 rooms Mercure Siam Bangkok 189 Dec-12 100%

Novotel Sukhunvit 4 Bangkok 185 Oct-18 100%

Midscale Resort Holiday Inn Pattaya Pattaya 567 Oct-09 100%

2 hotels | 777 rooms Mercure Pattaya Ocean Resort Pattaya 210 Dec-14 100%

Economy Hotel Ibis Sathorn Bangkok 213 Sep-08 100%

5 hotels | 1,001 rooms Ibis Nana Bangkok 200 Mar-09 100%

Ibis Riverside Bangkok 266 Nov-10 100%

Ibis Siam Bangkok 189 Dec-12 100%

Ibis Style Sukhumvit 4 Bangkok 133 Oct-18 100%

Economy Resort Ibis Patong Phuket 258 May-08 20%(2)

6 hotels | 1,385 rooms Ibis Pattaya Pattaya 254 Jul-08 20%(2)

Ibis Samui Samui 209 Oct-08 100%

Ibis Kata Phuket 258 Dec-09 100%

Ibis Huahin Huahin 200 Jan-12 100%

Ibis Styles Krabi Ao Nang Krabi 206 Nov-14 100%

Erawan Hotel Portfolio



HOP INN Hotel Thailand HOP INN Nongkhai Nongkhai 79 Apr-14 100%

36 hotels | 2,810 rooms HOP INN Mukdahan Mukdahan 79 Apr-14 100%

HOP INN Kanchanaburi (2branches) Kanchanaburi 158 Jun-14/Dec17 100%

HOP INN Udonthani Udonthani 79 Jun-14 100%

HOP INN Ubon Ratchathani Ubon Ratchathani 79 Sep-14 100%

HOP INN Nakhon Ratchasrima Nakhon Ratchasrima 79 Sep-14 100%

HOP INN Maesod (2 branches) Tak 156 Oct-14/Sep-17 100%

HOP INN Sakaeo Sakaeo 79 Oct-14 100%

HOP INN Lampang Lampang 79 Nov-14 100%

HOP INN Khonkaen (2 branches) Khonkaen 158 Dec-14/Oct-17 100%

HOP INN Phitsanuloke Phitsanuloke 79 Aug-15 100%

HOP INN Trang Trang 79 Nov-15 100%

HOP INN Nakhonsrithammarat Nakhonsrithammarat 79 Nov-15 100%

HOP INN Suratthani Suratthani 75 Dec-15 100%

HOP INN Krabi (2 branches) Krabi 146 Dec-15/Mar-18 100%

HOP INN Roiet Roiet 79 Jan-16 100%

HOP INN Chumphon Chumphon 79 Mar-16 100%

HOP INN Chanthaburi Chanthaburi 75 Apr-16 100%

HOP INN Sakon Nakhon Sakon Nakhon 75 Jun-16 100%

HOP INN Chiang Mai Chiang Mai 75 Aug-16 100%




HOP INN Thailand HOP INN Hat Yai Hat Yai 79 Oct-16 100%

36 hotels | 2,810 rooms HOP INN Phuket Phuket 79 Dec-16 100%

HOP INN Burirum Burirum 79 Mar-17 100%

HOP INN Rayong Rayong 75 Apr-17 100%

HOP INN Chiang Rai Chiang Rai 79 May-17 100%

HOP INN Lampang City Center Lampang 79 Jun-17 100%

HOP INN Huahin Prachuap Khiri Khan 79 Sep-17 100%

HOP INN Nakornsawan Nakorn Sawan 79 Dec-17 100%

HOP INN Lopburi Lopburi 79 Dec-17 100%

HOP INN Surin Surin 79 Apr-18 100%

HOP INN Chonburi Choburi 79 Aug-18 100%

HOP INN Chiangmai Superhighway Chiang Mai 79 Oct-18 100%

HOP INN Philippines HOP INN Ermita Manila 168 Dec-16 100%

5 hotels | 843 rooms HOP INN Makati Manila 144 Aug-17 100%

HOP INN Aseana Manila 196 Apr-18 100%

HOP INN Alabang Manila 168 Jul-18 100%

HOP INN Quezon Manila 167 Dec-18 100%



For More information Please visit www.theerawan.com

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Download - SET Opportunity Day 2/2019 · Opening 9 Hotels Revenue Growth 7%-10%. ... Luxury Hotel Grand Hyatt Erawan Bangkok 380 1991 74%(1) ... Ibis Kata Phuket 258 Dec-09 100%

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