minor business operations

8/11/2019 MINOR Business Operations

1/19

INFOGRAPHIC ON

BUSINESS OPERATIONS

Information & Data Collected from:

MINOR Internationals Official Website &

Thailand Business Journals

Prepared by:

RASHEEQ RAYHAN


2/19

Core Values

Customer Focus

Result Oriented

People Development

Innovative

Partnership

Minor International (MINT)is one of the largest hospitality and leisure companies in Asia Pacific region.Founded in 1978 with a

single beachfront resort in Pattaya, now they are meeting the growing needs of consumers in Thailand and in 25 markets from

Africa to Australia.

Under Minor Food Group, they operate almost 1,600 outlets operating in 20+ markets, while MINOR Hotel has over 100 Hotels &Resorts with over 12,000 rooms Worldwide.

In 2009, Minor International posted a net profit of US$ 42 millionand market capitalization of US$ 1,100 millionat the end of

the year. Minor International was recently recognized by Asia Money magazine as Thailands Best Managed Medium Cap

Company for financial and business performance, management strategy and vision, and shareholder value creation.

Vision

To be a leading hospitality and leisure operator, restaurant operator and lifestyle brand

retailer through the delivery of branded products and services that provide 100%

satisfaction to all stakeholders.

Business Operations

Their business can be divided in three (3) major categories:

1. Hotels & Mixed Use

2. Restaurants

3. Retail Trading & Contract Manufacturing

The major portion of Revenue and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) comes from the

Hotels & Mixed Use segment.


3/19


4/19

Company Structure


5/19

Group Organization Chart


6/19

Hotel Business

MINT currently has 103 hotels and serviced suites with over 12,000 rooms in its portfolio.

The hotel business can be divided into four (4) categories:

1. 19hotels that are majorly-owned

2. 16joint-venture hotels

3. 24hotels under their management contract

4. Management of several serviced suites

Note: In 2011 MINT acquired 100% of Oaks Hotels and Resorts Limited (Oaks), which

is one of the largest hotel and resort operators in Australia, with 44 properties,

over 5,800 rooms under management throughout Australia, New Zealand and Dubai.

Spa Business

MINT currently has over 47 spas in leading hotels in 12 countries.


7/19

Plaza & Entertainment Business

MINT owns and operates 3 shopping plazas adjacent to its hotels to complement their operations. In addition, MINT also runs 8

entertainment outlets in its Royal Garden Plazain Pattaya.

Residential Property Development

MINT currently has 2premium residential development projects, in Bangkok and Koh Samui.

The St. Regis Residences Bangkokconsists of 53residences and penthouses on Rajdamri Road in Bangkoks CBD. The

Residences embodies the Thai warmth of character along with the extraordinary refinement and luxury that are the

hallmarks of the St. Regisbrand.

The Estates Samuicomprise of 14villas above a secluded cove of white powder sand and crystal blue water on Koh

Samui. The facilities are next to, and managed by, Four Seasons Resort, Koh Samui.

Launched for the first time under the Anantara brand, Anantara Vacation Clubis a collection of luxurious shared-

ownership villas and apartments located in a variety of resort destinations for the use of its owners. Anantara

Vacation Club owners purchase Club Points that are backed by unencumbered real estate assets in some of the

most beautiful resort properties imaginable, held in trust for their benefit and security. The number of Club Points

owned determines your resort destination, time of year, length of stay, and the type of accommodation. Current

properties include Koh Samui, Phuket, Bangkok, Bali, Queenstown - New Zealand and Sanya - China. MINT will be

adding additional destinations to this list in the coming years.


8/19

Sector Overview of the Tourism Industry & Hospitality Business

2013 was a record-breaking year for Thailands tourism industry, with the number of international visitors to the kingdom rising

by 20% to 27 million, despite ongoing political concerns especially towards the end of the year. International tourist arrivals

brought in Baht 1.2 trillion (USD $37.42 Billion) in tourism income, an increase of 19% over the prior year. Rich naturalresources and a wide variety of places of interest, including beaches, mountains, heritage sites and the city of Bangkok have

afforded Thailand an enviable profile as a multi-purpose destination for a diverse range of travelers.

The Tourism Authority of Thailandexpects to further propel the tourism sector up the value chain, enhance revenue and attract

greater volume of visitors to more than 28 millionarrivals in 2014. Working in tandem with the private sector initiatives of hotel

and restaurant operators, together with low-cost airlines, Thailands tourism sector, whose direct and indirect contribution makes

up more than 16%of Thai GDP, looks poised for further growth.

Beyond Thailand, Minor Internationals expansion strategy to tap high-growth markets has the added advantage of portfolio

diversification. For instance, their international presence affords them greater market independence from Thailands eco-political

fluctuations, thus buffering their hospitality business from specific domestic shocks.

The Indian Ocean also presents abundant opportunities for the expansion of the hospitality business. In 2013, tourist arrivals to

the Maldives were up 17.4%over the prior year, due largely to greater interest in the destination from China and Russia. The

Fourth Tourism Master Plan of the Maldives, which was launched in 2013, articulates a 5-year strategic agenda and action plan

agreed by both public and private players in the tourism industry. To the North, Sri Lanka also stands on the brink of rapid

economic affluence. Since the end of civil strife in 2009, reassuring foundations have been laid for the countrys future economic

prosperity. Sri Lanka is experiencing a renaissance of arrivals of upscale and luxury travelers, attracted to the nations beaches,

culture, heritage and wildlife. With 4 hotels currently in operation in Sri Lanka, Minor Hotel Group has contributed to and

participated in Sri Lankas tourism re-emergence, and is very well positioned for the future.


9/19

Development of Thai Tourism Market


10/19

Company-owned, Oaks and Managed Hotels Revenues


11/19


12/19

Food Business

The Minor Food Group began in 1980 with one pizza restaurant in Thailand. Today, it owns,

operates or franchises more than 10 brands and a profitable system of more than 1,000

restaurants and in 13 countries across Asia. Minor Food Groupis keen to bring some of its FoodBrands into new market especially in South Asia in a form of Straight Franchise (Master

Franchise). Both Swensensand The Pizza Companyinternational office is in Bangkok, while The Coffee ClubandThai Expressare

based in Australia & Singapore respectively.

Core Brands

There are already 2Swensensoutlets in Manila that are operating under a franchise arrangement. This franchisee

has operated the outlets well. The outlets look good and they are profitable. However, the franchisee does not

have the financial capacity to develop the business further. They have terminated their master franchise agreementand they are operating the two outlets under single store franchise agreements. They have a 40 year agreement

with the brand owner (Kayla from Canada) to develop Swensensin 35+ countries across Asia and the Middle East.

There are almost 300 Swensensoutlets operating in Thailand, Cambodia, Laos, Myanmar, Philippines& India. Minor

has just entered into a JV with Devyani International(the company that does Pepsi, Pizza Hut, Costa Coffee and

KFC in India) to expand Swensensin India.

In 2001 Minor launched The Pizza Companya wholly owned brand, with over 300 outlets in over 10 countries. TPCis

one of the most successful brands in Thailand. Internationally, there are over 50 outlets and continually growing in

GCC (Middle East) and most part of South East Asia.

Thai Expressis from Singapore, which is fully owned by Minor. There are 30+ Thai Expressoutlets in Singapore and

20+ outlets in eight countries internationally. It is the largest Thai restaurant brand in Asia (and possibly the world).

In Beijing, Minor has 2 outlets and it expects to open 3 this year. As a Thai company, they are driven to expand this

brand internationally. It is a major priority for them and they are keen to develop it successfully.

The Coffee Club is from Australia and it is 50% owned by Minor. There are 300+ outlets in Australia and New

Zealand. Internationally there are approx. 30 outlets worldwide. All outlets are franchised outlets. The Coffee Clubhas extensive experience as a franchisor. Minor is leading the developer of this brand internationally. Minor has


13/19

already opened 12 outlets in Thailand and they expect to open 10 outlets in Thailand this year and 60 outlets in

Thailand after 5 years. Also Minor has formed a JV with a strong group in the UAE and together they plan to open

50 outlets in the Middle East within 5 years.

Market Positioning of the Brands

Brand Concept Company

Owned

Outlets

Franchised

Outlets

Total

Outlets

Locations

The Pizza

Company

Pizza 171 73 244 Thailand, China, Bahrain, Saudi, UAE, Jordan,

Cambodia

Swensens Premium Ice

Cream

114 116 230 Thailand, Saudi, UAE, Cambodia

The Coffee

Club

Coffee/Restaurant 17 224 241 Australia, New Zealand

Thai Express Thai cuisine 20 17 37 Singapore, Malaysia, Indonesia, Vietnam, India,

Australia

Dairy Queen Soft serve ice

cream

233 0 233 Thailand, Cambodia

Sizzler Steakhouse 42 0 42 Thailand, China

Burger King Sandwich 23 0 23 Thailand

Xin WangHong Kong

Caf

Chinese cuisine 17 0 17 Singapore

Shokudo Japanese cuisine 4 0 4 Singapore

NewYork New

YorkWestern food 11 0 11 Singapore

Other Brands 30 0 30 Thailand, Singapore

Totals 682 430 1112


14/19

Sector Overview of the Food Industry

2013 proved to be a year of mixed fortunes for restaurant operators, as headline domestic consumption grew slower than the

preceding year and the industry underwent intensifying competition, as well as political demonstration in Bangkok during the last

two months of the year. Thailands moderate rate of headline growth was largely a consequence of high base effect from 2012,when various government stimulus policies took effect and spending surged following 2011 flooding.

Simultaneously, the arrival of new small and medium-sized restaurant operators, combined with the expansion of existing

restaurant operators in both Bangkok and up-country led to growing competition, as evidenced by the proliferation of marketing

and promotional campaigns offered to consumers.

However, Minor Food Group remains fairly resilient in the face of competitive pressure, as the group enjoys two competitive

advantages:

It commands dominant market share in most food categories and segments in which it operates.

It also benefit from the solid operational platform and business network.

Together, scale and efficiency prove formidable, and we remain well-positioned to reap further growth in the years to come.

In 2013, revenue of the Minor Food Group increased by 16%, primarily the result of same-store-sales growth of 0.9%, together

with outlet expansion of 12%during the year, and consolidation of Riverside since its acquisition in December 2012. Net profit of

the group rose by 27%in 2013, resulting in improved net profit margin over the previous year, from increased operating leverage

benefiting from higher sales flow-through and the turnaround of the China business, coupled with cost savings.

All food brands exhibited strong performance with total system-wide sales increasing by 13.8% to Baht 34.4 billion in 2013.

Minor Food Group currently operates 1,544restaurants in Thailand, Singapore, Australia, China and 15 other countries under a

diverse portfolio of 9brands. Of total restaurants, 814are company-owned while the remaining 730outlets are franchised.


15/19

Comparative Market Share of Western Casual Dining in Thailand


16/19

Minor Food Group Revenues


17/19

Retail Trading Business

MINT is one of Thailands largest distributors of lifestyle brands with over 250points of sale focusing primarily on fashion and

cosmetics. MINT operates its retail trading and contract manufacturing business through Minor

Corporation Pcl., the group's consumer lifestyle company. Minor Corporation is a leading distributor ofinternational lifestyle consumer brands in Thailand focusing primarily on fashion, cosmetics, and

household products through retail, wholesale and direct marketing channels. These brands can be divided into the following

categories:

Fashion Apparel

Cosmetics Household

Online Shopping Club Contract Manufacturing


18/19

Sector Overview of Retail Trading Industry

In 2013, total revenue from retail trading and contract manufacturing increased by 6% while profit grew by 26%, primarily

attributable to the improved performance of the higher margin fashion business, the post-flood return to standard operations at

the NMT manufacturing plant together with the effective cost management programs.

The lifestyle fashion and cosmetics distribution business saw its core profit increase significantly by 90% from the prior year,

primarily driven by outlet expansion, in particular Esprit, Charles & Keith and Gap. NMT Limited, the contract manufacturing

business of MINT, posted growth in core revenues (excluding insurance claims from the flood received in 2012) of 9% in 2013,

with the resumption of full operations throughout 2013, following a half-year partial operation after the crippling floods of the

fourth quarter of 2011. Revenue growth in turn resulted in turnaround of profit for the same reasons above, coupled with Minors

stringent cost optimization plan.


19/19

THANK YOU!

WISHING YOU A COMFORTABLE, EUPHORIC AND PROGENITIVE TRIP.

RASHEEQ RAYHAN

Management Trainee

Disclaimer: The information, text, graphics, images, and all other relevant facts contained in this infographic are collected from official websites of MINOR

International, and owned by, or licensed to, respective brands and/or owners, and, except as specifically provided herein, may not be copied, distributed,

displayed, reproduced or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written

permission of MINOR International Pcl.

Copyright 2014 MINOR INTERNATIONAL PCL. All rights reserved.

minor business operations

Documents