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  • 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.

  • 3 2019 ERAWAN. All rights reserved.

    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 HotelsTo be opened

    in 2H19

  • 44 2019 ERAWAN. All rights reserved.

    Industry Update

  • 5 2019 ERAWAN. All rights reserved.

    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%

  • 6 2019 ERAWAN. All rights reserved.

    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

    Source : Department of Tourism as of Mar-19

  • 7 2019 ERAWAN. All rights reserved.

    Thailand Tourist Arrivals

    Source : Department of Tourism as of Mar-19

    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%

  • 8 2019 ERAWAN. All rights reserved.

    Performance Review 1Q19

  • 9 2019 ERAWAN. All rights reserved.

    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

  • 10 2019 ERAWAN. All rights reserved.

    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

  • 11 2019 ERAWAN. All rights reserved.

    Hotel Revenue by Room & F&B

    (Unit in MB)

    1% 6%

    1,7191,702

    1Q19

    1% YoY

    Bangkok hotels revenue still grew

  • 12 2019 ERAWAN. All rights reserved.

    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

  • 13 2019 ERAWAN. All rights reserved.

    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%

  • 14 2019 ERAWAN. All rights reserved.

    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%

  • 15 2019 ERAWAN. All rights reserved.

    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%

  • 16 2019 ERAWAN. All rights reserved.

    Phuket, Kata

    Outlook

  • 17 2019 ERAWAN. All rights reserved.

    Key Factors to Thailand Tourism Industry in 2H19

    Chinese Recovery Election

    Government Stimulus Package

    Thai Baht Depreciation

    Thailand Tourism Industry

  • 18 2019 ERAWAN. All rights reserved.

    2019 Outlook

    Update 2019 Outlook

    Tourist Arrival

    41.1 Million

    Occupancy Rate

    ~ 80%

    2019 Hotel

    Opening

    9 Hotels

    Revenue Growth

    7%-10%

  • 19 2019 ERAWAN. All rights reserved.

    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

  • 21 2019 ERAWAN. All rights reserved.

    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

  • 22 2019 ERAWAN. All rights reserved.

    Q & A

  • 23 2019 ERAWAN. All rights reserved.

    Success with Integrity

  • 2424 2019 ERAWAN. All rights reserved.

    Appendix

    1Q19 Review

  • 2525 2019 ERAWAN. All rights reserved.

    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%

  • 26 2019 ERAWAN. All rights reserved.

    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%

  • 27 2019 ERAWAN. All rights reserved.

    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

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