Minor International Public Company Limited

We are excited to enter the next chapter of Minor International, a chapter called “change”, as we strengthen our position as a global player.

Dear Fellow Stakeholders

As Minor International continues to excel on its path as a global company, we have also embarked on a path of change, one that will strengthen our ability to compete on the world stage. In today’s fast-changing world, Minor International will foster a culture that embraces and encourages change, with the objective to maintain our position on the forefront of the industry. As such, Minor International will embark on an enterprise-wide transformation over the next few years.

Our organizational transformation roadmap starts at the top, ensuring that we have an updated purpose and business strategy. Our vision remains “to be a leader in delivering exceptional Chairman’s Message experiences that anticipate and satisfy customers’ aspirations and positively impact stakeholders”. However, we must reassess all fronts of our organization, from the organizational structure for quick decision making, to our leadership & people, process & productivity, technology, culture & value and performance measurement.

The first step we took was to strengthen our management team. Effective January 2020, Dillip Rajakarier became Group Chief Executive Officer of Minor International, while I continue my role as Chairman of the Board. Dillip has been instrumental to the success of Minor International over the past 12 years that he has been with us, growing the hospitality portfolio to 535 hotels. In addition, we have appointed new Chief People Officer, Kulshaan Singh; while Patamawalai Ratanapol, our former Chief People Officer, has become the Chief Executive Advisor of S&P Syndicate Pcl., our long-term trusted business partner. Kulshaan has over 20 years of global experience in professional services and management consulting, with expertise in talent & leadership development, and organization change & human resources transformation. Furthermore, Minor Food will take on a new Chief Executive Officer this year as Paul Kenny retires, although remaining a member of the Board.

Another transformational step was the announcement of the Management Committee, led by myself as the Chairman and Dillip as the Group Chief Executive Officer. The organization is structured around three key pillars: (1) business and results, (2) growth and (3) transformation. The Chief Executive Officers of respective business units, Minor Hotels, Minor Food, Minor Lifestyle and NH Hotel Group are responsible for financial commitments, operational effectiveness and team motivation. The Chief Financial Officers of Minor International and NH Hotel Group, Chief Commercial Officer and General Counsel and Chief Investment Officer are responsible for opportunities to grow beyond financial commitments and long-term shareholder value creation. Furthermore, organizational transformation with an emphasis on a disruptive world will be driven by Chief Information Officer, Chief Strategy Officer and Chief Sustainability Officer. Our Chief People Officer will be the bridge between the growth and transformation pillars.

In 2020, we will be moving to a new corporate head office. It will not only be a change of address for Minor International, but also a change of approach to the way that we work. The new office is designed to foster collaboration and innovation to maximize creativity and synergies across teams. Our people will enjoy improved workspaces that allow for greater comfort and productivity.

For Minor International’s five-year plan for the period 2019 - 2024, we remain committed to our high-level financial and strategic objectives, while adding focus on organizational transformation for better and faster execution. We continue to target net profit growth on a compounded annual growth rate (CAGR) basis of 15 - 20%, and a core and organic return on invested capital (ROIC) of 11% by 2024. In addition, our ambition remains to be the employer of choice and a company with focus on sustainability.

In 2019, Minor International has made major progress towards our long-term aspirations. Anantara is taking on the world stage as a global hotel brand, with accelerated launches in key European cities. By the end of 2020, we expect to have about 50 hotels under the Anantara brand globally. Similarly, we aim for Avani and Tivoli to make their way to become global brands in the near future. Moreover, the integration with NH Hotel Group has opened up many new strategic collaboration opportunities. Without the luxury Anantara brand, NH Hotel Group would not have been able to enter into a lease contract of the prestigious former Boscolo portfolio in Europe. Without NH Hotel Group’s relationship with real estate investors in Europe, we would not have been able to successfully enter into the sale and lease back transaction of the Tivoli hotels. Going forward, we will continue to look for such strategic asset rotation strategies. For the restaurant business, a chicken concept has always been our target given its immense growth potential, hence Minor Food’s successful acquisition of Bonchon in Thailand. Leveraging on our current platform, we continue to look for opportunities to become a global restaurant operator, whether in the pizza, Thai food or chicken categories. For the first time in the history of Minor Lifestyle, we now have our own brand, Scomadi, the British designed scooter brand, which we aim to expand globally.

Throughout our path of transformation, we remain committed to sustainability. I am proud to report that this past year, we were awarded the Best SET Sustainability Awards 2019 for the second consecutive year. In addition, we maintained our status in the Dow Jones Sustainability Emerging Markets Index, the FTSE4Good Emerging Index, the MSCI ESG Leaders Index and the list of Thailand Sustainability Investment (THSI) 2019 by The Stock Exchange of Thailand (SET). Moreover, Minor International was recognized as the winner of the Board of the Year Awards 2018 among SET-listed companies with market capitalization of over Baht 100 billion for its excellence in good corporate governance and outstanding board and director professionalism, by the Thai Institute of Directors (IOD).

As Minor International’s new chapter unfolds, our ultimate goal remains growth and shareholder return maximization, while also creating positive impacts for our stakeholders. Despite global uncertainties and disruptions, whether it is the COVID-19, or emergence of Airbnb and online travel agents, we are committed to delivering growth, as we have done in the past. Back in 2003 during the Severe Acute Respiratory Syndrome (SARS) outbreak, we still achieved net profit growth of 16%, or in 2015 with the Erawan bombing in Bangkok, our net profit increased by 9%. With every challenge we face, we try to move ahead and emerge stronger.

On behalf of the Board of Directors, I would like to take this opportunity to thank all our stakeholders for the continued support. I would also like to express my sincere gratitude to the management team and employees for their extraordinary dedication and hard work in delivering a remarkable 2019. As we step into 2020, I look forward to another exciting and rewarding year.

William Ellwood Heinecke

Chairman and Chief Executive Officer

March 2020