MINT REPORTS RECORD NET PROFIT IN 2014, REFLECTING STRONG 7% YEAR-ON-YEAR GROWTH

Minor International (MINT) reported net profit of Baht 4,402 million in 2014, an all-time high and a 7% increase from Baht 4,101 million in 2013. This net profit growth was attributable to improved performance of all three of MINT’s core business units. The Company’s strategic international expansion in recent years has not only driven revenue and earnings growth but has also diversified its portfolio, which in 2014 helped MINT overcome the political and economic challenges in Thailand to post record numbers. Following its strong results, MINT’s Board of Directors recommended declaration of a cash dividend of Baht 0.25 per share for 2014, together with a stock dividend at the ratio of ten existing shares to one new common share. The dividend payment is subject to MINT’s shareholder approval at the Annual General Meeting of Shareholders to be held on April 3rd, 2015.

In 2014 MINT executed a number of strategic transactions which further diversified its earnings base and strengthen the company’s foundation for growth going forward.

• In MINT’s hospitality business in 2014, the Company invested in four additional hotel and mixed-use properties in Mozambique (bringing its total number of investments in that country to five). It also acquired significant shareholding interests from Sun International, a listed entity in Johannesburg, in a diverse portfolio of six hotels in Botswana, Lesotho, Namibia and Zambia. Going into early 2015, it made a strategic entry into both Europe and South America, with the acquisition of four hotels in Portugal and two hotels in Brazil operating under the Tivoli brand. Its partner Elewana acquired Serengeti Pioneer Camp in Tanzania to add to its portfolio.
• In MINT’s restaurant business in 2014, the Company established a joint venture company, BTM Thailand, together with the BreadTalk Group, a listed company in Singapore, to operate a bakery business under the BreadTalk brand in Thailand. The Company’s associate company in Australia, Minor DKL Food Group, acquired a controlling stake in Melbourne-based VGC Food Group, which owns and operates three retail coffee and food concepts, Veneziano Coffee Roasters, The Groove Train and Coffee Hit. MINT also entered into a partnership with S&P Syndicate Pcl. to launch a culinary institute under the name "Thai Cuisine Academy".

Each of MINT’s three core business units achieved year-on-year net profit growth in 2014.

• In 2014, MINT’s hospitality business delivered a robust 9% year-on-year increase in net profit. This was driven primarily by improved performance from its hotel operations, Anantara Vacation Club and Oaks. Whilst hotels in Bangkok, which accounted for 5% of MINT’s total revenue, saw their occupancy and revenue per available room (RevPar) impacted by political events in 2014, the strong performance of its Thai upcountry hotels together with solid improvement of the performance of overseas hotels more than made up for Bangkok hotels’ shortfall, resulting in system-wide RevPar growth of 3% over 2013. MINT’s hotel management business saw management fee income more than double from 2013 as a result of new hotels which opened during the year, together with the continued improvement of existing hotels. Anantara Vacation Club delivered robust sales growth, which also contributed to the better performance of MINT’s hospitality business in 2014. The Company saw significant improvement in the performance of its Bangkok hotels in the last six months of 2014 as compared to the first six months and expects this positive trend to continue into 2015.
• In 2014, MINT’s restaurant business delivered a 3% year-on-year increase in net profit. System-wide sales increased by 13.1% in 2014 as a result of 0.4% same-store-sales growth and the addition of 164 new outlets. In 2014, the Company’s leading position in the market as well as its on-going work to strategically calibrate its menus and execute effective marketing campaigns continued to propel sales growth in spite of political uncertainty and general weakness in consumer spending. Looking ahead, improving economic conditions as a result of the government’s economic policies, including budget disbursement and infrastructure spending, is expected to drive both consumer confidence and domestic consumption. This, together with on-going outlet expansion and strong marketing strategies across its international hubs, is expected to drive improved performance of MINT’s restaurant business in the near term.
• In 2014, MINT’s retail trading and contract manufacturing business delivered 21% year-on-year increase in net profit. This was principally driven by performance of the Company’s fashion business. In a difficult 2014 operating environment (due to political uncertainty and weak consumer spending in Thailand), MINT’s retail trading business implemented various cost-saving strategies while continuing to expand the number of outlets to set the stage for long-term growth opportunities when operating environment returns to normal. Such cost-saving efforts have created higher operating leverage which is expected to translate into profit growth and margin expansion.

About Minor International: Minor International (MINT) is a global company focused on three core businesses: restaurants, hospitality and retail trading (including contract manufacturing). MINT is one of Asia’s largest restaurant companies with over 1,700 outlets operating system-wide in over 20 countries under The Pizza Company, Swensen’s, Sizzler, Dairy Queen, Burger King, Thai Express, The Coffee Club, Ribs and Rumps, BreadTalk and Riverside brands. MINT is also a hotel owner, operator and investor with a portfolio of 126 hotels and serviced suites under the Anantara, AVANI, Oaks, Per AQUUM, Tivoli, Elewana, Marriott, Four Seasons, St. Regis, Radisson Blu and Minor International brands in 21 countries across Asia Pacific, the Middle East, Africa, the Indian Ocean, Europe and South America. MINT is one of Thailand’s largest distributors of lifestyle brands focusing primarily on fashion, cosmetics and contract manufacturing. Its brands include Gap, Esprit, Bossini, Charles & Keith, Pedro, Red Earth, Tumi, Zwilling J.A. Henckels, ETL Learning and Mysale. For more information, please visit www.minorinternational.com.

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