Banyan Tree Holdings Limited · SGX:B58
Banyan Tree — FY2016 Earnings Presentation
24 slides from Banyan Tree's earnings presentation, February 2017
Slide 1: Banyan Tree Holdings Limited 4Q16 & FY16 Results Briefing
A BANYAN TREE A BANYAN TREE Banyan Tree Holdings Limited 4Q16 & FY16 Results Briefing
Slide 2: Disclaimer
Disclaimer A BANYAN TREE 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,
Slide 3: Contents
Contents A BANYAN TREE 1. Overview & Outlook Ho KwonPing 2. Hotel & Fee-Based Business Eddy See 3. Property Business Eddy See 3
Slide 4: Overview & Outlook
A BANYAN TREE Overview & Outlook 4
Slide 5: Overview: Group Financial Highlights
Overview A BANYAN TREE Group Financial Highlights FY16 (S$’Mil) FY15 (S$’Mil) Change* REVENUE 309.6 370.7 16% OPERATING PROFIT 51.7 31.0 67% PATMI (16.2) (27.5) 41% Revenue 16% mainly due to: revenue from Property Sales and Fee-based segments but partially cushioned by: revenue from continuing stron
Slide 6: Overview: Outlook
Overview A BANYAN TREE Outlook Macro outlook1: Barring unforeseen circumstances arising from uncertainties caused by political developments in the USA and Europe, global economic growth is expected to pick up in 2017 following a very weak 2016. Promising hotel outlook: Travellers from Russia are exp
Slide 7: Outlook: Strategic alliance with AccorHotels
Overview A BANYAN TREE Outlook Strategic alliances with globally reputable and strong partners BTH with AccorHotels (Accor) - Propel Banyan Tree’s brands further into Europe, Africa, the Middle East and the Americas. - Accelerate Fee-based income. - Preserve brand equity while improving competivenes
Slide 8: Outlook: Alliance with China Vanke
Overview A BANYAN TREE Outlook BTH with China Vanke Co Ltd (Vanke) - Consolidate our assets in China via JV (BTC) which will help further strengthen the Group’s presence in China. - Provide avenue for branded hotel owners to exit and will help encourage more owners to let BT manage their asset. - Va
Slide 9: Hotel & Fee-Based Business
A BANYAN TREE Hotel & Fee-Based Business 9
Slide 10: Hotel Investments – Financial Performance
Hotel Investments – Financial Performance A BANYAN TREE Operating Profit Owned Hotels1 Highlights 4Q16 vs 4Q15 FY16 vs FY15 4Q16 vs 4Q15 / FY16 vs FY15 S$'Mil EBITDA due to: $20.0 revenue from Thailand. 13.2 provision for doubtful $16.0 0.5 debts. $12.0 operating costs due to several cost management
Slide 11: Fee-Based Business – Financial Performance
Fee-Based Business – Financial Performance A BANYAN TREE Operating Profit Highlights 4Q16 vs 4Q15 4Q16 vs 4Q15 FY16 vs FY15 EBITDA mainly due to: S$'Mil revenue from Hotel $30.0 Management operations. $25.0 Exchange gain in 4Q16 vs. exchange loss in 4Q15. $20.0 provision for doubtful debts. $15.0 20
Slide 12: Hotel & Fee-Based Business - Outlook
Hotel & Fee-Based Business - Outlook A BANYAN TREE Macro outlook: Better economic prospects are expected in the USA and Europe following a very weak 20161. Thai political situation is currently stable and will augur well for our Thai operation. Forward bookings (owned hotels, same store) for 1Q17 is
Slide 13: Hotel Business – Outlook: Total Hotels OTB Room Revenue
Hotel Business – Outlook A BANYAN TREE TOTAL HOTELS*(Same Store) On-The-Book (“OTB”) Room Revenue Highlights US$'Mil $40.0 Overall On-the-book (“OTB”) room revenue for 1Q17 vs 1% 1Q16 : $35.0 30.0 29.6 Thailand 10%. $30.0 28.4 26.5 Non-Thailand 4%. 25.7 25.0 24.8 25.1 17.0 17.8 21.2 Overall 1%. $25.
Slide 14: Hotel Business – Outlook: Owned Hotels OTB Room Revenue
Hotel Business – Outlook A BANYAN TREE OWNED HOTELS* (Same Store) On-The-Book (“OTB”) Room Revenue Highlights US$'Mil $25.0 For those hotels we owned, OTB room revenue for 1Q17 vs 1Q16 : 10% $20.0 Thailand 15%. 17.4 Non-Thailand 3%. 15.8 6.5 Overall 10%. $15.0 6.3 11.9 11.0 3% 10.5 10.0 9.5 9.5 5.2
Slide 15: Hotel Operating Performance – Ave Occupancy (%)
Hotel Operating Performance – Ave Occupancy (%) A BANYAN TREE Total Hotels1 Highlights 70% 4Q16 vs 4Q15 Groupwide and on “Same Store” basis, OCC 10% 65% points mainly due to our 63% resorts in Maldives, China and Mauritius. 59% FY16 vs FY15 60% 62% 57% Groupwide and on “Same 58% 55% Store” basis, OC
Slide 16: Hotel Operating Performance – Ave room rates (S$)
Hotel Operating Performance – Ave room rates (S$) A BANYAN TREE Total Hotels1 Highlights 500 4Q16 vs 4Q15 Groupwide and on “Same Store” basis, ARR 7% 450 and 4% respectively. It was mainly from resorts in 417 Maldives, Indonesia and 398 396 Mauritius. 400 417 384 377 398 FY16 vs FY15 358 381 355 338
Slide 17: Hotel Operating Performance – REVPAR (S$)
Hotel Operating Performance – REVPAR (S$) A BANYAN TREE Total Hotels1 Highlights 300 4Q16 vs 4Q15 / FY16 vs FY15 For 4Q, Groupwide and on “Same Store” basis, RevPAR 13% and 18% 250 respectively. 227 220 219 For FY, Groupwide and on 211 204 “Same Store” basis, 220 193 RevPAR 2% and 6% 200 216 192 185
Slide 18: Hotel Business – Outlook: Steady Pipeline Growth
Hotel Business – Outlook A BANYAN TREE STEADY PIPELINE GROWTH Number of keys1 Highlights 12,000 CAGR of 14% based on CAGR 2017-2020 = 14% 11,000 contracts completion Past Current Future dates. 10,000 Owned Hotels % 67% 49% 33% 9,077 Room keys estimated to 9,000 Managed Hotels % 33% 51% 67% 8,725 gro
Slide 19: Property Business
A BANYAN TREE Property Business 19
Slide 20: Property Business – Financial Performance
Property Business – Financial Performance A BANYAN TREE Operating Profit Highlights 4Q16 vs 4Q15 FY16 vs FY15 4Q16 vs 4Q15 / FY16 vs FY15 S$'Mil Operating Profit mainly due $18.0 to: $16.0 15.6 15.1 units recognised: $14.0 − 4Q16: 18 units vs 4Q15: 180 units. $12.0 − FY16: 82 units vs FY15: 243 $10.
Slide 21: Property Business – Hotel Residences
Property Business – Hotel Residences A BANYAN TREE Sales Progress Highlights Unrecognised Units Sold* Total Value Units Sold* Total Value Avg Price Revenue as at 4Q16 vs 4Q15 4Q 4Q YTD YTD YTD 31 Dec (Oct-Dec) (S$'m) (Jan-Dec) (S$'m) (S$'m) (S$'m) In 4Q16, there were 17 THAILAND new units sold vs 10
Slide 22: Property Business – Laguna Property Sales
Property Business – Laguna Property Sales A BANYAN TREE Sales Progress Highlights Unrecognised Units Sold* Total Value Units Sold* Total Value Avg Price Revenue as at 4Q16 vs 4Q15 4Q 4Q YTD YTD YTD 31 Dec (Oct-Dec) (S$'Mil) (Jan-Dec) (S$'Mil) (S$'Mil) (S$'Mil) In 4Q16, 11 new units THAILAND were sol
Slide 23: Property Business - Outlook
Property Business - Outlook A BANYAN TREE Encouraging property sales momentum in Phuket Favourable response to the launch of Angsana Beachfront apartments in late December. By end of January 2017, all 30 units (S$48.5m) that were available for sales were sold. Property sales in Chengdu, China will t
Slide 24: Mission Statement
Mission Statement A BANYAN TREE “ 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 ou