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Opportunity Day“Realizing Potential”29 March 2019
D u s i t T h a n i P l c .
2
Disclaimer
The material contained in this document has been prepared by Dusit Thani Public Company Limited (“DTC”) and may contain forward lookingstatements which includes but not limited to statements regarding our intent, belief, current expectation in respect of DTC’s business, operation,market researches, results of operation and financial conditions, capital adequacy, specific provisions and risk management practices.
While due care has been used in the preparation of forward looking statements, the assumptions of the information are subject to various risk anduncertainties which the actual results may vary in a materially positive or negative manner differently from the anticipation. And no assurancethat the past performance is a reliable indication of future performance.
Therefore, the information regarding forward looking statements shall not be considered as recommendation or advice to investors or potentialinvestors in relation to hold, purchase, or sell securities. In this respect, DTC reserves the right not to be responsible and expressly disclaims allliabilities for, damages of any kind arising out of use, reference to, or reliance on any information contained herein.
Agenda
Business overview 4
2018 Recap 11
Financial performance 22
2019 Outlook & Guidance 27
3
Page
4
Business overviewOur heritage inspires our future
Dusit Thani Bangkok, Thailand
DTC at a glance
5
70 Years in hospitality business
13 Countries
269* Properties in operation9 Owned hotels
260 Management contracts & franchise
Hotel management contracts in pipeline
Years in hospitality education business
60+25
As of 31 December 2018* Dusit Thani Laguna Phuket, dusitD2 Chiang Mai and the leasehold of Dusit Thani Hua Hin are under Dusit Thani Freehold and Leasehold Real Estate Investment Trust (DREIT)of which DTC holds a 30.02% stake.
Distinguished hospitality group with Thai heritage
Key milestones
6
1948
The Princess Co., Ltd.
1949The Princess
Bangkok Hotel
1966
DTC1970
Dusit Thani Bangkok
1987
Phuket1988
Pattaya1990
HuaHin1995
Chiang Mai1996
Bangkok1997
Manila2001
Dubai
Chiang Mai
Cairo
DTCPF
Maldives ChinaAbu Dhabi
Nairobi Guam Krabi
Vimarnsuriya(Mixed-use
project, Bangkok)
Rebranding hospitality education
ColoursInternational
Divested Dusit
Princess Korat
Dusit Foods&
2016
Dusit Thani Hotel School
As of 15 March 2019
1993
Korat1975
Dusit ThaniCollege
Brand established in Thailand
Overseas asset light expansion
2007 2010
2006
2012 2013 2014 2015
ChinaKhao Yai
Dubai
2017 2018 Phu QuocDusit
Gourmet
Expand & Diversify beyond hotel
• Balancing portfolio • Strengthening
foundation ChinaKrabi
ThimphuDavao
DusitHospitality Services
2019
Offered broadened experiences for our customers
7= Future plan
Remark: * 9.24% Investment
EXPERIENCELIMITED SERVICEFULL SERVICE
Bespoke/ Luxury Midscale Economy Budget Lifestyle/
BoutiqueBranded
ResidenceShared
EconomyCruise/ Villa/ Vacation Club
*
Business structure
8
DTC
As of 25 March 2019
Hotel Education Food OthersMixed-use project
Owned Hotel Food OEM REIT
Managed Residence
Office Building
Venture Capital
Retail
Food retail• favstay
Catering Hospitality Services• Outside Catering• Housekeeping • Restaurant• Hotel pre-opening
• NRIP
• Dusit Gourmet
• Epicure
• Hotel• Villa (Elite Havens)
Strategic direction
9
With strong background in the hotel management and education business, DTC has entered a new chapter with multi-year plan under “Balance, Diversify, and Expand” strategy…
… by strengthening 5 key pillar foundations.
Balance
Expand
Diversify
50:50 domestic/overseas revenue with balance of asset light vs capital investment
10% contribution from new adjacent business
Double number of rooms in operation to 14,000 keys in 2021Non-hotel:
Long
term
targ
et
Strategic roadmap
10
•Set new strategic direction•Develop new
Vision/Mission/Values•Focus on key priorities
•New iconic flagship hotel• Integration of hospitality
and education business•Double no. of keys
worldwide
•Completion of new mixed-use project
•More revenue contribution from new investments
•Balance of revenue contribution from Thailand and overseas
11
2018 RecapFull year of activities
Dusit Thani Bangkok, Thailand
2
111
1
China
Vietnam
Thailand
Bhutan
Philippines
JapanMyanmar
Bahrain
Qatar
New hotel expansion
12
DusitD2 Ao Nang ResortKrabi, Thailand
173 rooms
Phu Quoc, Vietnam
108 roomsDusit Princess Moonrise Beach Resort
83 roomsdusitD2 Yarkay ThimphuThimphu, Bhutan
33 roomsHeritage Villas Zhouzhuang, Managed by DusitJiangsu, China
The Beach Club at Lubi Plantation Island, Managed by Dusit
Davao, Philippines
dusitD2 Society Hill, Tianjin Tianjin, China
405 rooms
With first hotels in the emerging markets of Vietnam and Bhutan
New hotels
opened
6
New projects signed
14
Broadened DTC’s lodging spectrum
13
New lifestyle hotel brand launch “ASAI” Designed to connect millennial-minded travellers - a market valued at more USD 280 bn annually – with authentic local experiences in vibrant neighbourhoods worldwide. ASAI’s flagship hotel is set to open in Bangkok, on Sathorn Soi 12, at the end of 2019.
Sri Lanka
Maldives
Koh SamuiPhuket
BaliLombok
Niseko
14
Entered the high-end vacation rental market through the full acquisition of “Elite Havens”
Established since 1998, Elite Havens has performed integrated marketing, reservations, concierge and management services for luxury villas and maintains a network of 200+ fully staffed properties across Indonesia, Thailand, Sri Lanka, Japan, and the Maldives.
villas exclusively marketed
240
Broadened DTC’s lodging spectrum (Cont’d)
2018 Hotel & Villa portfolio
15
OverseasThailand
Man
aged
Ow
ned
Bangkok (Silom)Pattya
Hua Hin**Laguna Phuket**
Chiang MaiBangkok (Srinakarin)Chiang Mai**
Krabi Pathumwan PrincessRoyal Princess Larn Luang
Khao YaiAo Nang Resort, Krabi
ManilaMaldives
Nairobi (Kenya)Kenz Dubai (UAE)
Fudu Binhu (Changzhou, China)Yarkay Thimphu (Bhutan)
Society Hill (Tianjin, China)Guam (USA)Dubai (UAE)
Lakeview Cairo (Egypt)Abu Dhabi (UAE)
Dongtai (Jiangsu, China)Fudu Qingfeng (Changzhou, China)
Conghua (Guangzhou, China)
Heritage Villas Zhouzhuang, Managed by Dusit (Jiangsu, China)
As of 31 December 2018 * Include 1,022 rooms of Elite Havens** Under Dusit Thani Freehold and Leasehold Real Estate Investment Trust (DREIT) of which DTC holds a 30.02% stake
Moonrise Beach Resort Phu Quoc (Vietnam)
Operated 269 properties with 8,172 rooms* in 13 countries at the end of 2018
The Beach Club at Lubi Plantation Island, Managed by Dusit(Davao, Vietnam)
Indonesia (149 villas)Sri Lanka (5 villas)Maldives (8 villas)Japan (17 villas)
Phuket (42 villas)Koh Samui (19 villas)
16
Expanded the first college in Sri Lanka
Unique education concept of the Dusit Hospitality Management College (DHMC)• Fully integrated hotel – college• High tech – high touch• Relevant, industry-driven learning• Job ready graduates • Expected to open as part of dusitD2
The Fort Manila hotel in August 2019
Continued development of DHMC LCBD new office
New college set with Omega Global• The Dusit Omega Centre of Excellence
in Hospitality will follow the blueprint pioneered by the DHMC in Manila to offer a fully integrated learning experience.
• Located in Colombo and operating under a management agreement with Omega Global.
• The centre is now in the planning stages.
Le Condon Bleu Dusit Culinary School (LCBD) reinforces position as a top culinary and bakery institute in the region
Located in Manila,the Philippines
• Relocated to Zen Tower, CentralWorldShopping Centre, Bangkok, where it can accommodate an additional 600 students per year.
• Since established in 2007, LCBD has produced over 10,000 qualified personnel for the service and food industries.
More expansion on hotel-college integrated model
17Remark: (1) Excluding parking area
Mixed-use project: The new iconic landmark of Silom-Rama 4
As of 28 February 2019
Dusit Thani Bangkok Hotel 1970-2019
Dusit Central Park 2023 onwards
Diversified to non-hotel business: Food
18
STANDARDIZE HOTEL F&B
to support Dusit International hotels worldwide with cost
efficiency
LEVERAGE DUSIT BRAND
Promote Dusit brand in retail and diversify into
food sector
RIDE THE FOOD TECHEnjoy rapid growth from
meatless protein and other products
LINK TO OUR CULINARY
with Dusit education business, create food science & food tech
education opportunity
99.99%
Dusit Gourmet
Dusit Foods
NR Instant Produce
90.0%25.977%
DTC
10.0%Food retail to distribute Dusit branded premium products to domestic & international markets
Several food products were ready to roll out for testing by end-2018
Food manufacturer
As of 25 March 2019
Our strategy: Bringing ASIA to the World
Epicure Catering*
51.0%
International school catering
*New investment in January 2019
19
• A leading purveyor of Asian flavors for more than 27 years by developing great sauces and dishes that brings out the very essence of traditional flavors.
• Engages in the business of production and export of ready-made food to Europe, US, Australia, New Zealand, and Asia.
Source: NRIP and DTC
Recipe mixes: Curry paste, Instant beef flavor broth,Crab/Shrimp paste with soya bean oil, Pad-Thai sauce,Sweet chili sauce, etc.Ready to eat meals (Noodle & Rice): Pad-Thainoodle, Udon noodle, Hokkien noodle, Jasmine ricewith red/green curry sauce, etc.
Seasonings (Dipping sauce & Cooking sauce):Fried chili paste, Fried red onion, Plum sauce, Sataysauce, Coconut sugar, etc.Beverages: Instant green tea, Instant Thai coffeedrink, Aloe Vera Drink with Honey, etc.Others: Sushi ginger, Yanang leave extract, Galanga,Minced coriander, Thai basil leaves, etc.
Prod
uct r
ange
s
Private label and co-packing
Owned Brands
OEM Customers
Financials
Strong growth potential from NR Instant Produce (NRIP)
1,056 1,048
1,139
2016 2017 2018
Total Revenue
THB mn
138183 214
2016 2017 2018
Net Profit
Remark: 1 Jan – 2 Oct 2017 audited figures and 2 Oct – 31 Dec 2017 management report
Recurring income from Epicure Catering (ECC)
20
50 5789
2016 2017 2018
Net Profit
308 336409
2016 2017 2018
Total Revenue
• A market leader in the education catering business, providing high quality food services to International Schools in Thailand, Vietnam, and Cambodia.
• Offers the best quality products to ensure children receive healthy and nutritious meals by the highly skilled team of executives that include full time food safety officers and dieticians/nutritionists.
2003
ECC was established
20192015 2017
Launched its first ventures in Vietnam
with 3 leading International Schools
Acquisition of 51% shares by
Dusit Foods
Expansion acrossthe region into
Cambodia
Secured School Contracts• 34 in Thailand • 3 Vietnam• 1 Cambodia
• Management has over 35 years of hospitality experience and 25 years experience in F&B in Thailand.
• Epicure was recently awarded HACCP (Hazard Analysis and Critical Point System) and GMP (Good Manufacturing Practice) certification.
Remark: 2016 & 2017 audited figures and 2018 management report
2020
Acquisition of additional 19%
shares (Dusit Foods to
hold 70%)
Selected International Schools
Financials
Source: ECC and DTC
THB mn
New business following Dusit Thani Bangkok closure
21
Other hospitality services by Dusit Hospitality Service Co., Ltd.
BAAN DUSIT THANI
Outside CateringHigh-end catering service for corporate, government and social events
D’Collection
Began trialing an on-demand housekeeping services for businesses based in Bangkok with favstay. Services include housekeeping, banqueting service staff, engineering, kitchen, and stewarding.
White label managementPre-opening & training standards
A destination which houses a collection of signature restaurants and event spaces that embodies the spirit and service of Dusit Thani Bangkok. Expect to open in mid-2019.
Pre-opening
Housekeeping
Restaurant
22
Financial performanceRemained resilient
Revenue and EBITDA contribution
23
Hotel83.2%
Education7.6%
Others9.2% THB
5,565 mn
2017
Hotel89.4%
Education4.3%
Others6.3%
THB1,000 mn
EBITDA contribution
Remark: REIT data is included in hotel business; Others = Realized income from deferred rental revenue, gain on sales of assets, interest income, dividend income, share of profit from investment by equity method, office rental income, and others
Hotel82.4%
Education7.9%
Others9.7% THB
5,570 mn
2018Revenue contribution
Hotel77.8%
Education4.5%
Others17.7%
THB1,099 mn
2017 2018
Hotel key statistics (excluding Elite Havens)
24
Ow
ned
Hot
el S
tatis
tic
Remark: *Excluding Dusit Princess Korat which was divested at the end of December 2017, for comparison purposeData excludes information of Elite Havens
2018: 29 properties
in 10 countries
56%44%
59%41%
62%38%
63%37%
5,404 5,354 5,881 6,078
2015 2016 2017 2018Non-controlling interest Total
(1) (2)
Resilient EBITDA as planned
25
9,388 9,0339,980
11,573
2015 2016 2017 2018Non-current Current
3,984 3,679 4,0995,495
2015 2016 2017 2018Non-current Current
Total Assets Total Liabilities Total Equity
Remarks:(1) Including THB 325 mn gain on sales of assets (Dusit Princess Korat)(2) Including THB 37.5 mn gain from sales of long-term investment(3) Including THB 87.8 mn of severance pay (Dusit Thani Bangkok)
(1) (2) (3) (1) (2) (3)
Ample financial capability for future growth
26
Remarks:IBD = Bank O/D, short-term loan from related parties, loans from financial institutions, and financial lease liabilitiesNet interest beating debt (Net IBD) = IBD - Cash & cash equivalents including short term investment2015 DPS is revised retroactively to reflect the Company’s par value change from THB10 to THB 1 since May 2016
2018 Dividend subject to shareholder’s approval
XD : 28 Mar 19Payment : 15 May 19
27
2019 Outlook & GuidanceRealizing potentials
Dusit Thani Maldives
** *
* **** ** *
Japa
n
**
UK
Aust
ralia
Growing global presence
28
* = In operation
Will continue to expand the business through asset light initiative and lease model
• Hotel: To open 11 new hotels in Philippines, Singapore, China, Qatar, Bahrain, and Kenya
• Villa: To increase number of villas under Elite Havens management in the existing markets and new market targeting Australia
Coverage will increase from 13 countries to 20+ countries and from 8,172 rooms to 20,000+ rooms by 2023.
As of 25 March 2019
Sale of Dusit Thani Maldives to DREIT
29
• Improve the efficiency of asset portfolio• A strategic move to enhance DREIT’s appeal to investors• Allow DTC to have revenue creation, generate returns and source
funds to support the company’s business expansion • DTC will continue to obtain revenue from the property, and
receive dividends from DREIT.• Subject to shareholders’ approval in April• Transaction worth not less than THB 2,304 mn
Dusit Thani Maldives
2 New lease hotel investments in pipeline
30
• Hotel and long-term stay project worth approx. THB 740 mn located in Pathumwan area, Bangkok, Thailand.
• Subject to shareholders’ approval in April
Baan Rajprasong
Pathumwan, Bangkok, Thailand97 rooms
Pom Prap Sattru Phai Project
Pom Prap Sattru Phai, Bangkok, Thailand224 rooms
• Mixed-use project with hotel and retail mall of which DTC will develop and manage only hotel project worth approx. THB 1,000 mn. The project is located in Pom Prap Sattru Phai area, Bangkok, Thailand.
• Subject to shareholders’ approval in April
• To revitalize both degree and non-degree programs. Degree programs: To offer more specialized area of concentration and modular structure for continuing students Non-degree programs: To offer mid-career refresher courses
• To target new student segment in mid-career for further & ongoing development and/or hospitality focus segment.• To synergize more with hotels for offering education cum recruitment after graduation.• To open DHMC as part of dusitD2 The Fort Manila hotel• Greater collaboration with esteemed partners
More integration of hospitality and education business
31As of 25 March 2019
32
Reveal “Dusit Central Park” in April
Opening target• Hotel• Residence• Retail • Office
Early 2023Mid 2024Late 2023Early 2024
Apr2019
Early2023
Begin demolishing Dusit Thani Bangkok Hotel and office building
Opening of the new Dusit Thani Bangkok Hotel
As of 28 February 2019
Dusit Central Park public launch
Food investment framework
33
To reach THB 1,000 mn revenue by 2021 with 20%-25% CAGR
Raw Material Manufacture
• Traditional farming
• Contract farming
• Smart farming/ Food technology
Acquired Brand
DTC Owned Brand
High Growth Potential
Strong Distribution
Channels
Develop owned brand that is synchronized with
“Dusit Thani”
Become the marketing arm for NRIP brands
(existing and new) for Thailand and new
markets
• Integrated business under DTC brands (Restaurant, Education, and Retail)
• Recurring income and high growth potential from catering business for international school in Southeast Asia region
• Develop standalone Thien Duong and franchises
Distribution/ Retails Food Outlet
NR Instant Produce (NRIP)
Baan Dusit Thani: A new food destination at Saladang
34
Concept: A destination which houses a collection of signature restaurants and event spaces that embodies the spirit and service of Dusit Thani Bangkok. Creating a destination with beautifully curated spaces that is popular to our loyal customers and new customers who are attracted to Dusit Thani’s high quality offerings and well designed, photogenic spaces.
2019 Outlook & Guidance
35
• Expect to open 11 new hotels to add around 2,000+ keys
• Diversify risk and expand through overseas hotel focused
• New lease model• New service model through Elite Havens
and favstay
• Synergize more with hotel and food business
• Focus on Non-degree & Short-course• Revitalize specialized hospitality focused
programs• New segment of students targeting mid-
career in hospitality business
• Develop new brand under Dusit umbrella• New product & distribution• Capitalized investment• Potential overseas expansion, reach out to the
world through our high quality products
• Mixed-use project development • Wellness • Residence• Other new hospitality services
Remark: * = Dusit Thani Pattaya, Dusit Thani College, Dusit Princess Chiang Mai and Dusit Princess Srinakarin Bangkok
• Expect core revenue to grow 8-10%• Estimated CAPEX of THB 1,140 mn
• THB 245 mn for hotel renovation*• THB 245 mn for ERP, software, hotel
and education capex• THB 650 mn for mixed-use project
Long term outlook
36Remark: Excluding new investment and hotel renovation under DREIT
# of new managed properties per year
New residence
Food business growth (CAGR)
Core EBITDA margin
Average CAPEX per year* (THB mn)
10-12
Pre-sales ~ early 2019
20-25%
18-20%
1,000
10
Completed in 2024
15-20%
20-25%
2,500
• New iconic flagship hotel• Integration of hospitality and
education business• Double no. of keys worldwide
• Completion of new mixed-use project• More revenue contribution from new
investments• Balance of revenue contribution from
Thailand and overseas
37Dusit Thani Guam Resort