Banyan Tree Holdings Limited · SGX:B58

Banyan Tree — FY2017 Earnings Presentation

29 slides from Banyan Tree's earnings presentation, February 2018

  1. Slide 1: 4Q17 & FY17 Results Briefing

    4Q17 & FY17 Results Briefing 1

  2. Slide 2: Disclaimer

    Disclaimer This document is provided to you for information only and should not be relied on or used as a basis for making any specific investment, business or commercial decision. No representation or warranty, expressed or implied, is made as to, and no reliance should be placed on, the informatio

  3. Slide 3: Agenda

    Agenda 1. Overview & Outlook Ho KwonPing 2. Hotel & Fee-Based Business Eddy See 3. Property Business Eddy See 4. Key Figures Eddy See 3

  4. Slide 4: Overview & Outlook

    Overview & Outlook . ae, 3 , Sy e BANYAN TREE i me €& Veo HOLDINGS BANYAN TREE) ANGSANA~ “ CASSIA DHAWA

  5. Slide 5: Overview: Group Financial Highlights

    Overview Group Financial Highlights FY16 (S$’M) FY17 (S$’M) Change* REVENUE 309.6 317.5 3% OPERATING PROFIT 51.7 74.7 44% PATMI (16.2) 12.9 nm CASH EARNINGS** (9.4) 31.9 nm Revenue  3% and Operating Profit  44% due to:  Gain from divestment of China entities partially offset by  net fair value g

  6. Slide 6: Outlook

    Outlook Macro outlook1:  Global economic activity continues to firm up.  Projected growth for our key markets (Europe and China) revised upwards. Promising hotel outlook:  Hotel forward bookings  15%. Encouraging property sales in Phuket:  Newly launched Cassia Phuket (Phase 3) well received. 5

  7. Slide 7: Voluntary Tender Offer to increase economic interest in LRH

    Voluntary Tender Offer to increase economic interest in LRH:  Submitted LOI on 26th Feb 2018 to acquire all the remaining 34.25% ordinary shares in LRH. (BTH currently owns 65.75% of LRH.)  Offer price THB 40.  Total value for 34.25% shares : THB 2,283 million (~S$95 million)  Offer price is ~39

  8. Slide 8: Hotel & Fee-Based Business

    Hotel & Fee-Based Business BANYAN TREE HOLDINGS BANYAN FREE’) ~AANGSANAS CASSIA DHAWA

  9. Slide 9: Hotel Investments – Financial Performance

    Hotel Investments – Financial Performance Operating Profit Highlights Owned Hotels1 S$'M QTD YTD QTD / YTD: $20.0   revenue from Thailand  2.0m and Seychelles. $16.0 Partially offset by:   revenue from Maldives. $12.0  0.5m 18.7 $8.0 15.2 12.7 13.3 $4.0 6.9 4.0 3.6 4.1 $0.0 (0.4) 0.5 (2.8) (3.

  10. Slide 10: Fee-Based Business – Financial Performance

    Fee-Based Business – Financial Performance Operating Profit Highlights S$'M QTD YTD QTD: $30.0   fees (architectural &  7.6m design). $25.0 Partially offset by: $20.0  1.2m   fees (hotel, spa/gallery). $15.0 19.5 20.5 23.2 $10.0 YTD: 15.6 $5.0 6.8 6.5 8.7   fees (architectural & 7.5 0.4 4.1

  11. Slide 11: Hotel Operating Performance – Ave Occupancy (%)

    Hotel Operating Performance – Ave Occupancy (%) All Hotels (Same Store1) Highlights % QTD: 70% FY17: 63%   5% points 66% 65% 65% 2017 63% YTD:   6% points 62% 60% 62% Both periods due to our 58% resorts in Thailand and 58% Seychelles. 55% 2016 FY16: 57% 54% 52% 50% 1Q 2Q 3Q 4Q 2017 2016 1. Same

  12. Slide 12: Hotel Operating Performance – Ave Room Rates (S$)

    Hotel Operating Performance – Ave Room Rates (S$) All Hotels (Same Store1) Highlights S$ QTD: 420   2% due to Seychelles, FY17: 366 2017 402 Korea and Indonesia. 400 2016 388 397 380 YTD: 380   3% due to Thailand and 360 Seychelles. 341 340 340 334 FY16: 357 320 309 300 1Q 2Q 3Q 4Q 2017 2016 1.

  13. Slide 13: Hotel Operating Performance – RevPAR (S$)

    Hotel Operating Performance – RevPAR (S$) All Hotels (Same Store1) Highlights S$ QTD: FY17: 232  7% 290 263 270 2017 YTD: 250 241  14% 230 219 221 Both periods due to higher 2016 OCC %. 203 226 210 207 190 FY16: 203 170 161 150 1Q 2Q 3Q 4Q 2017 2016 1. Same Store Concept excludes all new resorts

  14. Slide 14: Room Revenue Of Owned Hotels By Country Of Residence

    Room Revenue Of Owned Hotels By Country Of Residence FY16 FY17 Others* Others* 10% 12% SE Asia China $9.8m China SE Asia 5% $12.5m 24% 23% 5% $5.0m $23.5m $25.4m $4.8m NE Asia 14% $13.8m NE Asia $14.1m 13% $99.8m $104.9m $9.0m $7.7m $27.9m Middle East $29.1m Middle East 7% 9% $10.8m Europe $11.2m Eu

  15. Slide 15: Room Revenue Of All Hotels By Country Of Residence

    Room Revenue Of All Hotels By Country Of Residence FY16 FY17 Others* Others* 13% 15% SE Asia $41.3m SE Asia $47.2m 4% China 43% 5% China $13.7m $14.2m 44% $132.2m $139.9m NE Asia $45.7m $310.3m $317.9m 15% $47.7m NE Asia 15% $19.2m $11.0m Middle East Middle East $12.5m $12.7m 6% 3% $45.8m $45.3m Rus

  16. Slide 16: Hotel Business – Forward Bookings (Owned Hotels)

    Hotel Business – Forward Bookings Owned Hotels1 (Same Store2) Highlights On-The-Book (“OTB”) Room Revenue US$'M  15% 1Q18 vs 1Q17: $25.0  Thailand  20%. 21.8  Non-Thailand  5%. $20.0 19.0 7.3  Overall  15%. 6.9 14.7 $15.0 13.5  5% 5.5 14.5 10.0 5.4 9.5 9.8 12.1 $10.0 8.1 4.1 4.4 3.7 9.2 3.4

  17. Slide 17: Hotel Business – Forward Bookings (All Hotels)

    Hotel Business – Forward Bookings All Hotels (Same Store1) Highlights On-The-Book (“OTB”) Room Revenue US$'M  20% 1Q18 vs 1Q17: $50.0  Thailand  23%. 44.3  Non-Thailand  18%. $40.0 37.0 26.4 35.6  Overall  20%. 22.4 29.0 29.5 24.1 $30.0 25.8 25.0  18% 20.3 19.6 19.0 18.0 17.6 $20.0 12.5 17.9

  18. Slide 18: Hotel Business – Projected Growth

    Hotel Business – Projected Growth Steady Pipeline Growth Highlights Number of keys1 No. of Keys 12,000 CAGR 2018 - 2020 = 23%  CAGR of 23% based on 11,054 Past Current Future 112 contracts completion 11,000 Owned Hotels % 67% 27% 17% dates. 10,000 9,385 Managed Hotels % 33% 73% 83% 112 2,389  28 h

  19. Slide 19: Hotel & Fee-Based Business - Outlook

    Hotel & Fee-Based Business - Outlook Income expected to increase:  Continuing economic growth for Europe and China, our key markets.  Strong pipeline of new hotel projects.  Collaboration with Accor and Vanke.  Forward bookings (owned hotels, same store) for 1Q18  by 15%.  Thailand  20%.  No

  20. Slide 20: Property Business

    y Z4N { ; XG \ LA Z ~ S $j Property Business BANYAN TREE $e @ Q, HOLDINGS BANYAN TREE) ANGSANA~ “ CASSIA DHAWA

  21. Slide 21: Property Business – Financial Performance

    Property Business – Financial Performance Operating Profit1 Highlights S$'M QTD YTD QTD: $5.0   units recognised: 31 units (4Q17) vs 18 units (4Q16). $4.0 4.2  0.8m 3.7 YTD:  2.3m $3.0   units recognised but at lower value and margin. 2.9  139 units (FY17) vs 82 $2.0 units (FY16). 1.9 $1.0 $0

  22. Slide 22: Property Business – Financial Performance: Sales Progress

    Property Business – Financial Performance Sales Progress Highlights QTD YTD QTD: Unit S$'M 200 $140.0  89 units sold vs 15 units in Unrecognised Revenue as at 31.12.2017 : S$166.2m 180 units 4Q16. 180 Recognised in Year S$'M 50.7 $120.0   mainly for Cassia 2018 160 2019 2.4 Phuket, Laguna Park an

  23. Slide 23: Property Business - Outlook

    Property Business - Outlook Encouraging property sales momentum in Phuket  Continuing strong response from Angsana Beachfront Residences and Laguna Park Phuket.  Cassia Phuket (Phase 3) well received when launched in Nov’17; close to 50% units reserved. Total 195 units (S$137.8m) sold in FY17 vs.

  24. Slide 24: Laguna Phuket (1.1 million sqm of potential land bank)

    Laguna Phuket (1.1 million sqm of potential land bank) 1 2 3 5 4 11 10 9 8 7 14 6 13 12 15 POTENTIAL DEVELOPMENT SITES 1 Sugar Palm 2 Dusit Beach 3 Plateau 4 Laguna Royale 5 Dusit Pitch & Putt 16 6 Angsana Dorm & Kindergarten 7 Old Hole 16 Golf 8 Laguna Mall 9 Angsana Oceanview 10 Golf Course 11 All

  25. Slide 25: Unlocking Laguna Phuket remaining land bank development potential

    Unlocking Laguna Phuket remaining land bank development potential Land Bank Potential Land Area Saleable area Potential Units (sqm) (sqm) Revenue (S$billion) Phuket Total Plan* 4,874 1,154,000 574,000 1.8 *Internal preliminary rough projection 25

  26. Slide 26: Key Figures

    Key Figures BANYAN TREE HOLDINGS BANYAN FREE’) ~AANGSANAS CASSIA DHAWA

  27. Slide 27: Key Figures

    Key Figures1 20% S$0.71 S$159m discount NAV2 Per Share Share Price3 / NAV Cash and Cash Equivalents 52% S$1.1b S$75m 14.2x Net Gearing Ratio4 Enterprise Value5 EBITDA EV/EBITDA Note: 1. Financial figures as at 31-Dec-17. 2. NAV denotes Net Asset Value. 3. Share price based on closing share price of

  28. Slide 28: Mission Statement

    Mission Statement “ We want to build globally recognised brands which by inspiring exceptional experiences among our guests, instilling pride and integrity in our associates and enhancing both the physical and human environment in which we operate, will deliver attractive returns to our shareholders

  29. Slide 29: Thank You

    Thank+. You iy

Banyan Tree Holdings — FY2017 Earnings Presentation on 6ix