Tuan Sing Holdings Limited · SGX:T24
Tuan Sing — Grand Hotel Group — H1 FY2004 Earnings Presentation
36 slides from Tuan Sing's earnings presentation, February 2004
Slide 1: December 2003 Half Year Results
GHG Grand Hotel Group Grand Hotel Group December 2003 Half Year Results
Slide 2: As at February GHG Owns
As at 20 February GHG Owns Grand Hotel Group 4 Hyatts (1530 rooms) - 1x 23,000 sq. metre office complex — 2 commercial car parks (approx 1500 cars) — 1xretail plaza (16 tenancies + food court) 3 Chifleys (271 rooms) 10 Country Comforts (800 rooms) According to independent valuations as at 30 June 20
Slide 3: Diversity of Location
GHG Diversity of Location Grand Hotel Group e Rockhampton Brishane Tamworth = @ ‘offs Harbour @ Armidale @ & Perth Port Macquarie ® CM Adelaide Sydney © Albury yaney @ © Melbourne, Mndgeo @ uudgee Canberra #G Wagga Wagga @ © Country Comfort © Hyatt Chiftey
Slide 4: Half Year Results Performance Analysis
Half Year Results Grand Hotel Group Performance Analysis Actual ($m) December Half Revenue (including asset sales) Revenue (excluding asset sales) EBITDA (including asset sales) EBITDA (excluding asset sales) 2002 90.5 80.4 18.9 15.8 2003 120.0 88.2 21.5 19.4 Variance +29.5m 132.6% +7.8m f 9.7% +2.6
Slide 5: Revenue (excluding asset sales)
Revenue (excluding asset sales) Grand Hotel Group TOTAL Accommodation MIFood & Beverage Retail & Commercial HOther Millions 2002 2003 1999 2000 2001 Six Months to 31 December Touraust revenue is recorded as Net Rent in "Other" Category
Slide 6: EBITDA
EBITDA Grand Hotel Group EBITDA Six Months to 31 December including asset saies DExcluding asset sales $25 19.8 19.9 19.3 $20 $15 Millions $10 $5 $0 1999 2000 2003
Slide 7: Half Year Results
Half Year Results Grand Hotel Group 6 Months to Dec 02 Dec 03 Change Net Op Profit After Tax (0.92) 2.49 +377.8% (excl. asset sales) ($m) Net Op Profit After Tax 2.15 4.58 +113.0% (inc. asset sales) ($m) EPS (cents) 1.10 2.06 +87.3% Available to distribute (cents) 3.26 4.36 +33.7% for half year
Slide 8: Debt to Total Tangible Assets Ratio
Grand Hotel Group Ratio 60% 50% 40% 30% 20% 10% 0% Debt to Total Tangible Assets Ratios for Periods June 2000 to December 2003 REGUISTON SCONE half Melbourne 49.1% 50.0% 47.6% ied 46.1% | | 43.2% 36.1% Dec-00 Jun-01 Dec-01 Jun-02 Dec-02 Jun-03 Mar-04 Period End
Slide 9: Sales Results
Sa les Resu its Grand Hotel Group Property Sales Book Value _— Sale Price GHG Rent Touraust Yield on Last 6 Months ‘03 Fees ?) Sale Price Property Sales" $53.17m $60.22m $1.18m $0.49m 1.96% (1) Properties sold in period being properties for which binding unconditional contracts exist (2) Touraust fe
Slide 10: Hotel Trading
Hotel Trading Grand Hotel Group Half Year End 31 Dec Number of Hotels Occupancy Rate Average Room Rate RevPar Hotel Revenue Non-Hotel Revenue Net Operating Profit (Trading) Profit % Revenue 2002 24 70.6% $127.30 $89.87 $103,277 ,558 $3,906,321 $18,488,672 17.2% 2003 19 75.7% $131.33 $99.42 $109,382,
Slide 11: Hotel Performance - Melbourne Yield
GHG Hotel Performance - Melbourne Yield grndicter croup Comparative Performance of Grand Hyatt Melbourne (Revenue Per Available Room) Victoria 5 Star “Grand Hyatt Melbourne $200.00 $160.00 $120.00 $80.00 $40.00 ABS Statistics for December 2003 not available until March 2004 Source: Australian Bureau
Slide 12: Hotel Performance - Adelaide Yield
GHG Hotel Performance - Adelaide Yield Grand Hotel Group Comparative Performance of Hyatt Regency Adelaide (Revenue Per Available Room) Z4 South Australia 5 Star —@=Hyatt Regency Adelaide $158.65 $79.32 4 ABS Statistics for December 2003 not available until March 2004 Source: Australian Bureau of St
Slide 13: Hotel Performance - Canberra Yield
Hotel Performance - Canberra Yield Grand Hotel Group Comparative Performance of Hyatt Hotel Canberra (Revenue Per Available Room) $160.00 FZAAACT 5 Star Park Hyatt Canberra $120.00 4 $80.00 $40.00 ABS Statistics for December 2003 not available until March 2004 Source: Australian Bureau of Statistics
Slide 14: Hotel Performance - Perth Yield
GHG Hotel Performance - Perth Yield Grand Hotel Group Comparative Performance of Hyatt Regency Perth (Revenue Per Available Room) ; [4 West Australia 5 Star —@=Hyatt Regency Perth 160.00 $120.00 $80.00 $40.00 ABS Statistics for December 2003 not available until March 2004 Source: Australian Bureau o
Slide 15: Hotel Performance - Chifley Yield
GHG Hotel Performance — Chifley Yield Grand Hotel Group Comparative Performance of Chifley Portfolio (Revenue Per Available Room) EZz214 Star Australia —@—Chifley $100.00 $90.00 $80.00 $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 ABS Statistics for December 2003 not available until March 2004 So
Slide 16: Hotel Performance - Country Comfort Yield
GHG Hotel Performance — Country Comfort Yield Grand Hotel Group Comparative Performance of Country Comfort Portfolio (Revenue Per Available Room) [22233 Star Australia —®= Country Comfort ABS Statistics for December 2003 not available until March 2004 Source: Australian Bureau of Statistics, Tourist
Slide 17: GHG's Business Plan & Strategy
GHG’s Business Plan & Strategy Grand Hotel Group Continue to Increase Operating Performance of our Hotels ~ reviewing product market mix - — introducing on-line material and services purchasing (market boomer) Melbourne: - Improving - GHM - 24.6% of Total Hotel Revenue - Results December 6 months en
Slide 18: GHG's Business Plan & Strategy
GHG’s Business Plan & Strategy Grand Hotel Group Canberra: Price leader, Parliamentary business, (election) Adelaide: Price leader, influx of supply Perth: Mid range Corporate, MICE Regional Australia: Loyal customer base, see Australia campaign Improving Flat Improving Steady 18
Slide 19: GHG's Business Plan & Strategy
GHG’s Business Plan & Strategy Grand Hotel Group Next 3 years Increase Other Activities - Development of Grand Hyatt Plaza - Diversify income streams - Pursue strategic acquisitions / alliances 19
Slide 20: GHG's Business Plan & Strategy: Capital Management
GHG’s Business Plan & Strategy Grand Hotel Group Capital Management Debt: Reducing debt from Sales proceeds & withholding of distributions New facilities to 2006 CPS: Tenure 31 December 2005 Possible buy-back 20
Slide 21: GHG's Business Plan & Strategy: Capital Management cont.
GHG’s Business Plan & Strategy Grand Hotel Group (Capital Management cont) Gearing: Continue reducing via sale of under-performing assets and valuation uplift Asset: Continue to trade assets out of low growth areas and replace with larger, regional hotels or assets with diversified income Board: Rev
Slide 22: Accommodation Takings
Accommodation Takings Grand Hotel Group ACCOMMODATION TAKINGS (a), Seasonally aclustec! ancl Trenc—ustralia $m - 1400 a” | 1300 F 1200 F 1100) — trend ia) | 2%? ~~ Seas adj. | eno Sep ‘Mar Sap ‘Mar Sep Mer Sap Mar Sep Mar Sap “Mar Sap ige7 1998 1908 2000 2001 2002 2003 fa) Break in time senes betwae
Slide 23: Australian Hotel Cycle
Australian Hotel Cycle GHG Grand Hotel Group Major Australian Cities Hotel Markets Weighted Real Room Yields 1988 - 2010 40 1 20 3 Source: Dransfield, Hotel Futures, page. 6 & Grand Hotel Management Limited 23
Slide 24: Future Outlook - A Cyclical Recovery
Future Outlook - A Cyclical Recovery Grand Hotel Group = Industry — International arrivals t 2003 but Sep-Dec positive growth + to continue — Domestic demand expected to increase — 2004 travel spending expected to grow = Apparent recovery in industry - Tourism consumption $70.8bn (t 22% since 1997-9
Slide 25: The Future
The Future Grand Hotel Group Demand Domestic steady due to stable economic and security conditions Inbound recovering — December fourth month in row of positive growth Supply Melbourne market will continue to be soft Other with the exception of Adelaide, supply remains low 25
Slide 26: GHG Security Price
GHG Security Price Grand Hotel Group GRae HOTEL Ge a OF LEFeb-200d O76 rT ’ r T GHG LAM { i i Hill fons: a t Th nh i | Panera oh > St fe ‘ esi ban am) en i i i rr) Gi eo Yabo Test. i 3 Mi Pee Anu. Finale gates tate 26
Slide 27: The hotel market is cyclical and profits should increase significantly on the upswing
Grand Hotel Group The hotel market is cyclical and profits should increase significantly on the upswing.
Slide 28: December 2003 Half Year Results (Statistical Handout)
GHG Grand Hotel Group Grand Hotel Group December 2003 Half Year Results (Statistical Handout)
Slide 29: Key Portfolio Statistics
oro] Grand Hotel Group KEY PORTFOLIO STATISTICS 6 months to: Actual Figures Total Portfolio Occupancy Rate Average Rate Yield (Rev Par} Hotel Revenue Non Hotel Revenue Net Operating Profit Profit % Revenue § Star Hyatt Portfolio Occupancy Rate Average Rate Yield (Rev Par} Hotel Revenue Non Hotel Rev
Slide 30: Comparative Performance - Hyatt Properties
oro] Grand Hotel Group COMPARATIVE PERFORMANCE - HYATT PROPERTIES 6 months to: 31 Dec 2003 31 Dec 2002 % change Actual Figures Grand Hyatt Melbourne Occupancy Rate 85.0% 69.0% 16.0% Average Rate 167.07 174.76 (2.7%) Yield (Rev Par) 142.01 118.51 19.8% Hotel Revenue 26,925,702 23,908,870 12.6% Non Ho
Slide 31: Portfolio Historical Occupancy Rates & Average Room Rates
oro] Grand Hotel Group PORTFOLIO HISTORICAL OCCUPANCY RATES & AVERAGE ROOM RATES 3 Months OR ~ ARR ~ OR ~ ARR ~ OR ARR ~The OR - ARR - to: Total Total Hyatt Hyatt The Chifley Country Country Portfolio Portfolio —_— Portfolio Portfolio Chifley Portfolio Comfort Comfort Portfolio Portfolio Portfolio 3
Slide 32: Property Portfolio Compendium
Grand Hotel Group PROPERTY PORTFOLIO COMPENDIUM Hyatt Portfolio Facilities Rooms Title Site Area Grand Hyatt Melbourne Extensive convention facilities, two ballrooms, exhibition and business 547 Freehold 5,776 facilities, health and fitness club, iwe restaurants, bars, food court, nightclub, indoor
Slide 33: Non-Hotel
Grand Hotel Group Non-Hotel Grand Hyatt Melbourne Description Lettable Tithe Tenants Oce : Area m’ Rate Grand Hyatt Plaza Comprises 16 retail outlets 1,016 Freehold (included Incinde: Digbys, Louis Feraud, Miss 100% arranged over two levels. within hotel) Louise, Mark Muir, Thomaiy, Bentine Gems plu
Slide 34: Hyatt Centre Perth
Grand Hotel Group Hyatt Centre Perth Description Lettable Title Tenants Oce Rate Area m’ Hyatt Centre Offices Comprises B Grade offices arranged in a U 23,000 Freehold Newcrest Mining, Dept of Housing 99% shape over 3 levels around an open forecourt. (imeludes & Works, Dames & Moore, Waters (include
Slide 35: The Chifley Portfolio
Grand Hotel Group The Chifley Portfolio Facilities Rooms Title Site Area The Chifley on Conference facilities, restaurant and bar, coffee shop, outdoor pool, gym, and 94 Freehold 4,265 SouthTerrace, Adelaide ample undercover open parking. The Chifley on George, Conference facilities, restaurant and
Slide 36: Country Comfort Portfolio
Grand Hotel Group Country Comfort Portfolio Facilities Rooms Title Site Area Albury Conference rooms, bar and restaurant, outdoor pool, sauna and ample open parking. 140 Freehold 6,571 Cairns Outrigger Large conference room, bar and restaurant, outdoor pool, and adequate underground 90 Freehold 4,07