Siam Wellness Group Public Company Limited · SET:SPA

Siam Wellness Group Public — FY2015 Earnings Presentation

44 slides from Siam Wellness Group Public's earnings presentation, 2016

  1. Slide 1: SPA FY15 Summary

    SPA EY 15 SUMMARY Ad AZ oo” [ ets Relax, BaanSuan) o RARINJINDA Sissge ~~ —_RARINJINDA WELLNESS SPA. WELLNESS SPA RESORT

  2. Slide 2: Disclaimer

    Disclaimer: The information contained in this presentation is for information purposes only and does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for share in Siam Wellness Group Public Company Limited (“SPA” and shares in SPA,

  3. Slide 3: Agenda

    Agenda 1. Company Overview 2. Market Overview 3. Company Financial Performance 4. Future Outlook

  4. Slide 4: Executive Summary

    1 Executive Summary FY15 Revenue grows +58% Y-Y FY15 Tourist arrival grows in average and FY15 Net profit grows 220% +20% Y-Y with significance growth Y-Y, marks best record for in our key market resulting in Company Performance Average Utilitization Rate of 82% Key Achievements: Future: • Acquired Ba

  5. Slide 5: Company Overview

    COMPANY OVERVIEW QO Lets Relax RARINJINDA WELLNESS SPA Baansuan) Massage (ox) RARINJINDA WELLNESS SPA RESORT Blooming

  6. Slide 6: SPA is the first full-scale spa company listed on mai

    3 SPA is the first full-scale spa company to listed on mai with the most comprehensive services and most number of branches. Spa SWL (spa products) SWR SWE (hotel & food) (massage school)

  7. Slide 7: 5-Stars, 4-Stars and 3-Stars Spa brands

    5-Stars Spa 4-Stars Spa 3-Stars Spa Innovative Wellness Spa Boutique Day Spa Neighborhood Massage & Spa Avg. Spend = 2,000 THB/pax Avg. Spend = 1,050 THB/pax Avg. Spend = 500 THB/pax CAPEX 25 million THB/branch CAPEX 10-15 million THB/branch CAPEX 10million THB/branch 3 Branches 15 Branches 5 Branch

  8. Slide 8: SPA's branches are located in most strategic locations

    5 Chiang Mai SPA’s branches are located in most strategic locations 3 3 15 2 14 2 Bangkok 2 10 1 2 8 6 5 Pattaya 4 4 4 4 1 2 1998 2003 2004 2006 2008 2011 2013 2014 2015 2016 Hua Hin BRANDS BANGKOK UPCOUNTRY Koh Samui RarinJinda 2 1 Let’s Relax 8 7 Baan Suan 5 Phuket

  9. Slide 9: Market Overview

    MARKET OVERVIEW Oo ets Relax RARINJINDA WELLNESS SPA. Baansuan) Massage a Sal RARINJINDA WELLNESS SPA RESORT ss ue Blooming

  10. Slide 10: Thailand Spa Industry

    7 Thailand Spa Industry 10 % 4-6 stars Highly Fragmented 90% 3 stars and below MARKET VALUE 31.1(+10%)* billions Bahts 50% 50% Hotel Spa standalone SPA - the market leader Market Share ~2% Source: Thai Spa Association, Department of Business Development, Ministry of Commerce

  11. Slide 11: High expectations for tourist numbers

    High expectations for tourist numbers Tourist Arrivals to Thailand Thailand Tourist Arrivals Thailand Tourist Arrivals Forecast 29.8 60 30 51.8 26.5 50 24.8 43 25 40 22.3 36 30 20 19.1 20 15.9 14.5 14.6 15 13.8 14.1 10 11.6 10 2016F 2017F 2018F 5 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 201

  12. Slide 12: Optimistic Tourist Arrivals by Nationality

    9 Optimistic Tourist Arrivals by Nationality Tourist Arrivals to Thailand by Nationality 2014 2015 %Δ Nationality Number %share Number %share 2015/2014 China 4,636,298 18.69 7,934,791 26.55 71.14 HongKong 483,131 1.95 669,165 2.24 38.51 Japan 1,267,886 5.11 1,381,690 4.62 8.98 SPA’s Korean 1,122,566

  13. Slide 13: Company Financial Performance

    Company Financial Performance 10

  14. Slide 14: Financial Summary

    11 Financial Summary FINANCIAL · Best Record PERFORMANCE · Revenue increase (Q-3 months) · Y-Y% (Q4’15 VS Q4’14) : 45% (156 VS 108 MB) · Q-Q%(Q4’15 VS Q3’15) : 8% (156 VS 144 MB) · Revenue incresase (12 months) · (12M’15 VS 12M’14) : 58% (543 VS 343 MB) FINANCIAL · Net Profit (Q-3 months) PERFORMANCE

  15. Slide 15: SPA's Strong Operational Performance

    SPA’S STRONG OPERATIONAL PERFORMANCE SPA Customer by Nationality SPA Revenue SPAbyRevenue by Business Brand 3% Asian 2 % M.East 5% 13% 83 Western 10% Hotel& % Food Let’s Relax 83 Korean | Jap 55% % 25% China | HK | 13 Taiwan spa 4% 4 Thai | Ex-pat % RarinJinda % Products BaanSuan SPA Customer Source

  16. Slide 16: Solid Total Revenue Growth

    13 Solid Total Revenue Growth 4Q15 Total Revenue grows 45% YoY and 8% QoQ FY15 TOTAL REVENUE GROWS 58% from FY14 (THB millions) 543.50 MB 175 156.26 144.25 150 343.36 MB 325.93 MB 125.15 125 117.59 107.76 94.07 100 89.82 77.93 82.17 71.76 75.27 70.51 75 50 25 0 Q1’13 Q2’13 Q3’13 Q4’13 Q1’14 Q2’14 Q3

  17. Slide 17: Solid Gross Profit Growth

    Solid Gross Profit Growth 2015 Gross Profit Margin remains stable around 36-38% 43.90% 41.50% 40.90% 39.50% 37.90% 37.20% 35.91% 250 40.30% (THB millions) 34.10% 37.18% 36.10% 32.60% 33.41% 208.53 200 27.90% 150 118.02 100 55.09 56.14 50 47.64 49.66 43.96 44.67 31.29 28.63 35.5 25.19 28.95 19.21 Q1’

  18. Slide 18: Solid Net Profit Growth

    15 Solid Net Profit Growth 2015 Net Profit is stable around 19-20%, which is very attractive 20.90% 20.50% 20.32% 19.97% 18.30% 16.40% 19.72% 17.00% 19.40% 15.30% 10.60% 9.83% 120 6.60% 2.00% 106.50 100 80 60 40 33.25 30.80 28.44 23.67 23.59 20 16.88 16.86 17.52 11.51 12.08 9.46 4.86 1.41 Q1’13 Q2’1

  19. Slide 19: SPA's Revenue Structure

    SPA’s Revenue Structure Revenue = No. of Branches x No. of Therapists x Staff Utiliz Rate x Avg. Spnd Revenue (Spa) x x x No. of No. of Staff Average Utilization Branches Therapist Rate Spending /Pax Performance No. of Branches No.of Therapist Staff Utilization Rate 12M13 11 330 76% 12M14 13 390 68%

  20. Slide 20: TSS - SSG/Expansion, Brand, Location Classification (QoQ)

    17 TSS - SSG/Expansion, Brand, Location Classification The Group has 8% QoQ growth, 4% growth from spa business and 4% growth from hotel business SSG(3%) SSG Expansion Expansion(1%) SPA RarinJinda (-) (4%) Brand Let’s Relax (1%) TSS QoQ 8% Location Baan Suan (3%) BKK (4%) UPC (-%) HOTEL Hotel (2%) (

  21. Slide 21: TSS - SSG/Expansion, Brand, Location Classification (YoY)

    TSS - SSG/Expansion, Brand, Location Classification The Group has 58% YoY growth, 55% growth from spa business and 3% growth from hotel business SSG(46%) SSG Expansion Expansion(9%) SPA RarinJinda (3%) (55%) Brand Let’s Relax (47%) TSS YoY58% Location Baan Suan (5%) BKK (28%) UPC (27%) HOTEL Hotel (

  22. Slide 22: Key Financial Ratio

    19 Key Financial Ratio D/E Ratio remains strong at 0.18 ROA and ROE continues to grow D/E Ratio Liquidity Ratio 50% 6.00 40.32% ROE 5.14 40% 5.00 37.13% ROA 4.00 3.92 30% 3.37 25.70% 2.92 26.36% 23.28% 3.00 24.41% 21.60% 20.52% 3.07 2.44 17.26% 17.68% 18.14% 20% 2.00 14.37% 14.84% 19.96% 1.30 11.13%

  23. Slide 23: Dividend History

    Dividend History Financial Payment Dividend Total EPS per Share Dividend Payout Year Date (Thb/share) Payout Consolid/Separate Ratio Consolid/Separate 2014 Annual 30/04/15 0.025 14.25M 0.08 0.05 31% 50% 2015 Interim 25/12/15 0.05 28.50M 2015 Annual 25/4/16* 0.05 28.50M 2015 Total 0.1 57.0M 0.19 0.16

  24. Slide 24: Outlook

    21 OUTLOOK “~~ ; a Le 6 Relax WELLNESS SPA, _Baansuan) Massage (ox) RARINJINDA WELLNESS SPA RESORT ss Blooming

  25. Slide 25: Spa 2016 Forecast

    Spa 2016 Forecast million (THB) FY15 FY16F % FY17F % (FY15 v FY16F) (FY16 v FY17F) Consolidated 543 721 +33% 936 +30% Spa 450 625 +39% 828 +32% SpaProducts 20 30 +50% 40 +33% Hotel & Restaurant 64 66 +3% 68 +3% Other 10 22

  26. Slide 26: Financing the Growth of 2016

    23 Financing the Growth of 2016 SPA has kept approximately 500 million THB (D/E will move from 0.16 to 0.63) as Investment Budget for 2016 This Investment Budget comes from 3 Channels 1) Net Cash Flow B/F 100 million THB 2) Operating Cash Flow 50 million THB 3) Financing Cash Flow 350 million THB Bu

  27. Slide 27: Spa Branch Expansion Plan

    Spa Branch Expansion Plan Total No. of Branches 60 BKK UPC 51 50 17 41 40 12 31 30 10 21 20 8 13 11 10 8 8 7 6 5 6 4 5 5 1 2 3 4 4 1 2 1 1 2 3 3 5 6 13 21 29 34 1998 2003 2004 2007 2010 2011 2012 2013 2014 2015 2016 2017 2018 Remark: SPA’s Branch Expansion Plan does not include Overseas Expansion 24

  28. Slide 28: SPA Vision 2020

    25 SPA Vision 2020 To become the Asia’s Regional Spa Brand(s) with branches expanded throughout Asia.

  29. Slide 29: Why SPA is a growth Stock?

    Why SPA is a growth Stock? High Net Relatively Margin once lower capex reached compared to break-even Hotel Business Tourism will be a rising Quicker Higher star for Thai turnover Spending for Economy compared spa for to Hotel foreigners Business (SPA’s main target) 26

  30. Slide 30: Q&A

    Q&A SPA IR Contact Ms. Yonlawan Eiamalongkorn Tel. 02 641-6619-20 E-mail: yonlawan@siamwellnessgroup.com Company information www.siamwellnessgroup.com/investor_relations www.facebook.com/siamwellnessgroup

  31. Slide 31: Appendix

    APPENDIX “o> t's Rela S) Q st ARINJINDA fe 4 Re BaanSuan (Saad 7 xk. Larrivee Massage RARINJINDA blooming : WELLNESS SPA RESORT Slemsosdielinass Bajentx

  32. Slide 32: RarinJinda Wellness Spa

    RarinJinda Wellness Spa World-Class Wellness Spa that harmonize all of life’s senses to deliver the ultimate Wellness Experience RarinJinda Wellness Spa, a premium and innovative spa that harmonized all life senses. It is dedicated to be the most innovative and admirable Thai Wellness Spa by combini

  33. Slide 33: RarinJinda Wellness Spa locations

    RarinJinda Wellness Spa CHIANG MAI (1) RarinJinda Wellness Spa Chiang Mai BANGKOK (1) RarinJinda Wellness Spa Ratchadamri (2) RarinJinda wellness Spa Ploenchit

  34. Slide 34: Let's Relax

    Let’s Relax Thailand’s Boutique Day Spa that offers refined spa indulgence for the a New Lease of Life. Let’s Relax Spa stands for warm hospitality and sensory revitalization, with convenient and accessible branches across the nation. The serene atmosphere with contemporary decoration induces a relax

  35. Slide 35: Let's Relax locations

    Let’s Relax CHIANG MAI PATTAYA (1) Let’s Relax Chiang Mai Pavillion (1) Let’s Relax Pattaya Dolhin Circle (2) Let’s Relax Chiang Mai Thapae PHUKET BANGKOK (1) Let’s Relax Patong 2nd Street (1) Let’s Relax Phromphong (2) Let’s Relax Patong 3rd Street (2) Let’s Relax Terminal 21 (3) Let’s Relax Mandar

  36. Slide 36: Baan Suan Massage

    Baan Suan Massage Cozy and Warmth Neighbourhood massage, center with the touch of Thainess for your comfort Baan Suan Massage, a neighborhood massage center that you will feel like home, It is a stand-alone massage shophouse comprises of a house, which is converted into thai, foot and aroma massage

  37. Slide 37: Baan Suan Massage locations

    Baan Suan Massage BANGKOK (1) Baan Suan Nonthaburi (2) Baan Suan Charoennakorn (3) Baan Suan Ramintra (4) Baan Suan Ramkamhaeng (5) Baan Suan Prachanukul

  38. Slide 38: RarinJinda Wellness Spa Resort

    RarinJinda Wellness Spa Resort RARINJINDA WELLNESS SPA RESORT is a wellness boutique spa resort with 35 rooms, decorated in thai contemporary style. CHIANG MAI The resort is equipped with full facilities such as full service Spa, (1) RarinJinda Wellness Spa Resort Swimming Pool, Fitness Center, Yoga

  39. Slide 39: Deck1 | D.Bistro

    Deck1 | D.Bistro “Deck1” The Exotic Scene & Cuisine, a fine-dinining Riverside Restaurant, offers delectable Asian, Thai and Western cuisines with Full Wine Cellar with outdoor and indoor seating. CHIANG MAI (1) Deck1 Restaurant Chiang Mai “D Bistro”, a Casual Dining style in Chiang Mai Old Town, off

  40. Slide 40: Blooming spa products

    Blooming spa products “Blooming, Siamese Wellness Secrets” combines the knowledge of the pharmacists and the expertise of the spa therapist to create a natural spa product collection that offers optimal benefits. Products have 4 categories · Skin Care · Spa Care · Health Care · Home Care

  41. Slide 41: Blooming Thai Massage School

    Blooming Thai Massage School Blooming Thai Massage school offers theoretical and practical training to spa therapists. The instructors are well qualified with certificates from the United States and Thailand (Wat Pho). The school is certified by the Ministry of Educa- tion.

  42. Slide 42: Multi-Award Winning Spa Group

    Multi-Award Winning Spa Group • Best Luxury Destination Spa • Best Day Spa World Luxury Spa Awards 2012 Asia Wellness Spa Festival Gold Awards 2009 • Best Luxury Boutique Hotel World Luxury Hotel Awards 2012 • Best Spa - Let’s Relax Best of Thailand Awards 2015 • 1 of 8 Best Luxury Spas in the World

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