Chairman's Message
Extract from Annual Report 2015
Dear Fellow Stakeholders:

On behalf of the Board of Directors, I am delighted to share our 2015 Annual Report with you. The year turned out to be a mixed one for the global economy, with business environments in certain markets that we operate putting our people to the test. Individually and collectively, our management and employees have risen to this challenge. With a solid long-term strategy, disciplined execution and our strong brand portfolio, we are navigating testing times in a very robust way. As a result, Minor International has once again produced its best results on record. Our net profit increased 60% to another record-high of Baht 7,040 million.

I am convinced that brand building is one of the biggest levers we have that helps us improve profits and keeps us ahead of competition. I am proud of our management's and our employees' efforts to develop and manage our multi-brand portfolio, which plays a crucial role in producing sustainable earnings growth for our shareholders. The theme of this year's Annual Report is "The Power of Brands", which, I believe, is a key to customer loyalty and our long-term growth. For over three decades, we have built an unrivaled portfolio of brands. Our products and services of over 50 brands, comprising our owned brands and other reputable international brands, are offered in more than 30 countries and range from mid-market casual dining restaurants to ultra-premium luxury hotels. Our portfolio grew to more than 145 properties (including hotel, residential and vacation club) and over 1,800 restaurants across Asia Pacific, the Middle East, Africa, the Indian Ocean, Europe and South America.

At Minor, we recognize that reputable brands are assets that take years to craft. Skillful branding not only improves recognition and esteem, but also creates credibility and trust. Our decades of concerted brand-building have afforded us competitive advantages that help fend off competition in good times and bad. Furthermore, successful branding translates directly into long-term financial value through the valuation premium that our share price enjoys.

In 2015, we made clear progress on a number of strategic fronts that will lay the foundations for future growth in revenue, profitability and shareholder's value. Our brands and business presence continuously expanded across various geographies, through organic growth and acquisitions. Most notable among these advances were the following achievements:

  • Our successful acquisition of Tivoli Hotels and Resorts, which comprises twelve properties in Portugal and two properties in Brazil, as well as the Tivoli brand and its operating platform. This major investment underlines our strategy to strengthen our hotel brand portfolio and enter into Europe and South America;
  • We opened AVANI Riverside Bangkok, which was the first new built hotel in AVANI's upscale portfolio, and the second hotel to proudly fly the AVANI flag in Bangkok. The property has been purpose-designed to highlight the brand's signature hallmarks and become a smart and trendy lifestyle destination featuring contemporary accommodation, restaurants and bars, multi-purpose meeting space and up-to-date shopping plaza;
  • We officially rebranded our flagship property, which is located in the heart of central Bangkok's Ratchaprasong district, to Anantara Siam Bangkok from Four Seasons, adding it to our Anantara luxury portfolio. Following the rebranding, we refurbished the property's guest rooms and public areas. The hotel is now the flagship of our Anantara brand in Bangkok;
  • We announced our first hotel investment projects in Malaysia and Indonesia. We entered into a joint-venture partnership with a subsidiary of Khazanah Nasional Berhad to develop an Anantara resort in Desaru Coast in southeast Malaysia. We also formed a joint-venture with a subsidiary of PT Wijaya Karya (Persero) tbk to develop Anantara Resort in Ubud, Bali, Indonesia. The two hotels are scheduled to open in 2018 - 2019;
  • Through our subsidiary Elewana, we acquired four properties in Kenya, together with a tour operating company and intellectual property from Cheli & Peacock, an integrated safari tour operator, manager and property owner of safari camps and lodges in Kenya. This transaction has added six properties to our prestigious Elewana portfolio, completing our Safari circuit in Tanzania and Kenya, and bringing the total number of camps under Elewana Collection to 14;
  • Under hotel management contracts, we continued to set our footprint and build brand awareness in new territories. In 2015, we opened AVANI Seychelles Barbarons in Seychelles, Banana Island Doha by Anantara and Souq Waqif Doha by AVANI in Qatar. We announced our continued expansion in the UAE by signing hotel management contracts to operate Anantara Mina Al Arab Ras Al Khaimah and Anantara Dubai Creek, with both hotels scheduled to open in 2018 - 2019. We also entered into hotel management contracts to develop two new Anantara resorts in North Africa, namely, Anantara Tozeur in Tunisia and Anantara Al Houara Tangier in northern Morocco. The two hotels are scheduled to open in 2016 - 2017 and expected to set the stage for our stronger North African portfolio in years to come;
  • Oaks Hotels & Resorts, our subsidiary in Australia, continued to lead in its home market by expanding not only through the acquisition of Management Letting Rights contracts but also through acquisitions of hotels and serviced apartments. In 2015, we added 159 rooms to our Oaks portfolio with the launch of Oaks Carlyle and The Milton Brisbane under Management Letting Rights contracts. We also added another 301 rooms by acquiring Elan Soho Suites, later renamed Oaks Elan Darwin, our first property in the territory's capital city of Darwin, making our Australian Northern Territory debut. At the end of 2015, Oaks Hotels & Resorts had 53 properties in its portfolio;
  • Our real estate business, including residential development and Anantara Vacation Club which have leveraged on our strong hotel brands, saw strong revenue growth in 2015. We started selling The Residences by Anantara, Phuket in the second half of 2015, with 3 units sold in 2015. Additionally, the construction of our first luxury resort-style condominium project in Chiang Mai, Anantara Chiang Mai Serviced Suites that we developed in conjunction with U City PCL., is on schedule to be completed and sold out totally in 2016;
  • For our restaurant business, we increased our stake in Minor DKL Food Group (Minor DKL), which operates restaurant business mainly in Australia, from 50% to 70%, prompting us to consolidate its financials into the Group's account. From a single brand of The Coffee Club when we first acquired the initial 50% in 2008, Minor DKL has expanded to own a portfolio of multiple restaurant brands, ranging from The Coffee Club, Ribs and Rumps, The Groove Train, to Coffee Hit. It also expanded into coffee roasting by acquiring Veneziano Coffee Roasters in 2014;
  • We have reached an agreement with our long-time partner S&P Syndicate PCL. to form a 50/50 joint venture, Patara Fine Thai Cuisine in the United Kingdom that has the rights to develop the Patara and Suda restaurant brands in the UK. The move is expected to support our long-term aspiration to become a leader in driving the development of Thai cuisine worldwide;
  • We also launched the American-based fashion brand, Banana Republic, in Thailand, further strengthening our position as one of the leaders in retail fashion market in the country. We believe there is ample room for growth in the mid-end and high-end markets, thanks to increasing urbanization and wealth among the middle class in Bangkok and other provinces;
  • We are included in the 2015 Dow Jones Sustainability Emerging Market Index. This is the second consecutive year that MINT is recognized for sustainability leadership in the Consumer Services sector. The Dow Jones Sustainability Indices track the performance of the world's leading companies in terms of economic, environmental, governance and social performance factors. Minor places great emphasis on sustainable development and corporate responsibility, and we are pleased to be included in the index once again;
  • We are recognized by Euromoney for the second consecutive year, as the Best Managed Company - Leisure in Asia, Overall. Euromoney's annual Best Managed Company ranking is one of the most reputable and influential awards in Asia, and is highly recognized by the investment community. The ranking is based on nominations of market analysts at leading banks and research institutes in Asia across a number of categories, including corporate governance, management accessibility, accounting transparency, shareholder value creation, quality of company website, and company performance.

Looking ahead, Minor International is well positioned to continue growing. Remaining committed to our five-year strategy, we will seek to grow upon driving a portfolio of our own brands, with additional contribution from selected international brands. I would like to emphasize that we will continue to strengthen and utilize our brands across new and existing geographies. Furthermore, we will find ways to maximize our asset value and productivity while continuing to look for opportunities to expand internationally through strategic investments and acquisitions. At the same time, we will strengthen organizational capabilities, maintain our high standards of corporate governance, and advance our sustainability agenda.

My hope is that Minor's devotion to brand-building will instill ever-greater pride and loyalty among our team members who contribute so much to these brands. Likewise, these same brands will elevate Minor International to heightened visibility in the international arena, thus helping to attract talent from all over the world, bolster our bench strength, and support our growth aspirations. On behalf of the Board of Directors, I would like to thank all our stakeholders for their continuing support. I also offer sincere appreciation to our management and staff for their dedicated work and commitment during the past year, and to our Directors for their advice and guidance. Sadly, we note the passing of Kenneth Lee White, a director and a close friend of Minor for more than 17 years, who passed away last November. He will always be remembered for his great contribution as an independent director to Minor's success.

I look forward to working with everyone in the coming year.


William Ellwood Heinecke
Chairman and Chief Executive Officer
March 2016