Quarterly Meeting# 4/2016 - listed...

Quarterly Meeting# 4/2016

3Q16 & 9M16 Performance & Outlook

16 November 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 with another record high in 3Q16. Thai tourism

continues with strong growth momentum at 13% in

3Q16 and 12% in 9M16.

Profitability continues with 3Q16 turnaround from Loss

at 20 MB in 3Q15 to Net Profit at 56 MB

Our hotel development progressed as planned,

+1 HOP INN Chiang Mai resulting to 20 HOP INN or

38 hotels (6,059 rooms) at the end of 3Q16.


4 Q & A

3 Outlook

Agenda

1 Industry Update

2 Performance Review 3Q16 & 9M16


-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

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 19.57 M 2014 YTD 17.32 M

2015 YTD 22.09 M 2016 YTD 24.82 M

YoY 2015-2016

+15% +16% +15% +10% +8% +7% +11% +11%

+18%

International Tourist Arrivals

Millions

YTD 24.82 millions, +12% y-y

Source : Department of Tourism as of Sep-16 (Prelim)


Tourist Arrivals by Quarter

Source : Department of Tourism as of Sep-16 (Prelim)

7.0

6.1

6.6 7.0

6.4

5.1

5.8

7.5 7.9

6.9 7.3

7.8

9.0

7.6

8.2

Q1 Q2 Q3 Q4

2013 2014 2015 2016

Thai tourism growth momentum to continue through third quarter


Source : Department of Tourism as of Aug-16

Tourist Arrivals by Source Markets

East Asia 68%

Europe 18%

The Americas

4%

South Asia 5%

Oceania 3%

Middle East 2%

Africa 0% Continent

8M16

YoY

East Asia 13%

Europe 10%

The Americas 13%

South Asia 10%

Oceania 1%

Middle East 12%

Africa 7%

Total 12%

8M16 Contribution


Source : Department of Tourism as of Aug-16

Tourist Arrivals by Key Source Markets

8M15

Weight

8M16

Weight

YTD-16

Y-Y

8M16

3Y/CAGR

China 28% 30% 19% 57%

Malaysia 11% 10% 2% 24%

South Korea 4% 4% 12% 17%

Japan 5% 4% 4% 9%

Laos 4% 4% 19% 16%

India 3% 4% 14% 16%

Russia 3% 3% 20% 22%

United Kingdom 3% 3% 8% 6%

Singapore 3% 3% 3% 14%

United States 3% 3% 14% 14%

Other 33% 32% 9% 7%

Grand Total 100% 100% 12% 14%


4 Q & A

3 Outlook

Agenda

1 Industry Update



Statistic Summary 3Q16 & 9M16 (YoY)

Segment 3Q16 9M16

OCC RevPAR OCC RevPAR

Luxury 10% 14% 4% 8%

Midscale 8% 14% 5% 8%

Economy 11% 3% 9% 1%

Budget 17% 28% 17% 35%

Total Group 10% 2% 7% 2%

Total Group excl. Budget 10% 12% 7% 6%


Core Performance Summary

(Unit in MB, unless otherwise indicated)

1,099 1,008 1,216 1,375

3Q13 3Q14 3Q15 3Q16

293 197

295 405

3Q13 3Q14 3Q15 3Q16

(6) (83) (20)

56

3Q13 3Q14 3Q15 3Q16

3,869 4,147

9M15 9M16

EBITDA

Normalized Net Profit

1,079 1,252

9M15 9M16

94

264

9M15 9M16

Turnaround from Net Loss to Net Profit in 3Q16

Group Operating Income 13% YoY 7% YoY

37% YoY 16% YoY

178% YoY


3Q13 3Q14 3Q15 3Q16 3Q13 3Q14 3Q15 3Q16

3Q13 3Q14 3Q15 3Q163Q13 3Q14 3Q15 3Q16

Hotel Revenue

Luxury Segment Midscale Segment

7%

Economy Segment

14%

Budget Segment

140%

9M15 9M16

11%

9M15 9M16

9M15 9M16 9M15 9M16

4%

Total Group 3Q16 9M16

13% 7%

9%

6% 138%


Room Revenue by Country of Residence

3Q16 9M16

Contribution Y-Y Contribution Y-Y

1. China 15% 22% 15% 24%

2. Thailand 16% 26% 15% 10%

3. United States 9% 4% 10% 6%

4. Singapore 6% 9% 6% 7%

5. Hong Kong 6% 17% 5% 1%

6. India 5% 13% 5% 3%

7. South Korea 4% 6% 3% 16%

8. United Kingdom 3% 21% 3% 7%

9. Germany 2% 2% 3% 4%

10. Australia 3% 10% 3% 16%

Other 32% 13% 31% 11%

Total Group 15% 10%


Consolidate Profit & Loss Statement

In Baht Millions 3Q15 3Q16 %Y-Y 9M15 9M16 %Y-Y

Hotel Income 1,165 1,321 13% 3,717 3,989 7%

Rental and Service Income 51 54 5% 152 158 5%

Total Operating Income 1,216 1,375 13% 3,869 4,147 7%

Other Income 6 7 17% 26 30 17%

Total Income 1,222 1,382 13% 3,895 4,177 7%

Operating Expenses (927) (977) 5% (2,816) (2,925) 4%

EBITDA 295 405 37% 1,079 1,252 16%

Share of Profit /(Loss)in ERWPF 5 (4) 17 9

ERWPF Rental Payment (28) (28) (84) (84)

Depreciation (181) (185) (537) (545)

Interest Expenses (96) (89) (292) (271)

Taxes (13) (30) (66) (90)

Minority Interest (2) (13) (23) (26)

Normalized Net Profit/(Loss) (20) 56 N/A 94 245 158%

Non Recurring Items - 19

Net Profit/(Loss) (20) 56 N/A 94 264 178%

EBITDA Margin (%) 24% 29% 28% 30%


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 3Q16

Interest-bearing Debt to Equity

TO

TA

L IN

ER

ES

T-B

EA

RIN

G D

EB

T (

MB

)


0

4,000

8,000

12,000

16,000

FY2014 FY2015 3Q16

Baht Million

Total Assets

Summary of Financial Position

FY2014 FY2015 3Q16

Total Liabilities & Equity

ST Loan

LT Loan

Other Liabilities

Equity


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

32.4

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 Oct-16

Proven Resilience to Challenges

Protest

8%


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 Opened in Aug16

HOP INN #21 Hatyai 79 rooms Opened in Oct 16

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 in Oct 16)

• Phuket (open in Dec 16)

Eastern (2 hotels) • Chantaburi

• Sa Kaeo

Central (1 hotel) • Phitsanulok

29 HOP INN Thailand By 2017

7 Hotels to open in 2017


1st HOP INN Philippines (Open in Dec-16)

‘Hop Inn Ermita Manila’


1st HOP INN Philippines

“Ermita” Description

• One of district in Manila, the capital city of

Philippines

• The major commercial, financial, and cultural

center of the city.

• Home to famous landmarks, government offices,

tourist attractions, museums, and universities.

• Several government institutions such as Supreme

Court of the Philippines and Manila City Hall.


4 Q & A

3 Outlook

Agenda

1 Industry Update

2 Performance Review 2Q16 & 1H16

Appendix

3Q16 & 9M16 Review


Operating Income by Segment

3Q16

Contribution Y-Y

Luxury 52% 11%

Midscale 24% 14%

Economy 16% 7%

Budget 4% 140%

Rental 4% 5%

Total Group 13%

9M16

Contribution Y-Y

51% 4%

24% 9%

18% 6%

3% 138%

4% 5%

7%


Operating Income by Destination

3Q16

Contribution Y-Y

Bangkok 66% 11%

Pattaya 16% 11%

Phuket 6% 25%

Other 12% 23%

Total Group 13%

9M16

Contribution Y-Y

64% 3%

17% 8%

7% 19%

12% 22%

7%


EBITDA by Segment

Note : • For illustration purpose only • EBITDA by Segment is calculated without taking non-property-specific expenses into account. • The Naka Island are excluded due to negative EBITDA.

3Q16

Contribution Y-Y

Luxury 47% 37%

Midscale 27% 25%

Economy 14% 15%

Budget 5% 158%

Rental 6% 9%

Total Group 37%

9M16

Contribution Y-Y

43% 8%

28% 16%

19% 11%

5% 173%

5% 6%

16%


EBITDA by Destination

Note : • For illustration purpose only. • EBITDA by Destination is calculated without taking non-property-specific expenses into account. • The Naka Island are excluded due to negative EBITDA.

3Q16

Contribution Y-Y

Bangkok 68% 32%

Pattaya 19% 13%

Phuket 1% N.M.

Other 12% 40%

Total Group 37%

9M16

Contribution Y-Y

64% 9%

20% 12%

3% 86%

12% 37%

16%


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