1. Gross Profit and Net Profit Margin
Return on Long-Term Fixed Assets Ratio
Debts to Equity Ratio and Interest Coverage Ratio

2. Banyan Tree Holding Limited’s Total
Revenue
Total Revenue 2007 2008 Difference
Banyan Tree Holding $ 424,131 $ 427,921 0.89%
Shangri La Asia Limited US$1,353,271 US$1,219,248 10.99%

3. BanyanTreeHolding’sTotal
Revenue

4. Banyan Tree Holding Limited’s Total
Revenue Analysis
421,859
2,272
Total Revenue (2007)
Revenue
Other income
412,612
15,309
Total Revenue (2008)
Revenue from main activities decreased by
2.19%. Reasons for decrease in sales from
main operations:
• Global Economic Crisis number of tourist
decrease  average occupancy of resorts and
hotels decreased by 5%.
• Deterioration of Property Market
property prices decrease due to the
economic 39% decrease in property sales
• Political unrest in Thailand and Tibet and the
visa restrictions  tourist cancelling their
bookings in these countries hotel investment
decrease by 5%

5. Banyan Tree Holding Limited’s
Gross Profit Margin
Gross Profit Margin
(Gross Profit/Sales)
2007
$’000
2008
$’000
Difference
Gross Profit (Revenue-Operating
Supplies)
340,371 348,644 (2.43%)
Sales 424,131 427,921 0.89%
Gross Profit Ratio 80.25% 81.47% 1.22%

6. Banyan Tree Holding Limited’s
Gross Profit Margin
Gross Profit
2007 = $424,131-
$83,760 = $340,371
2008 - $427,921-
$79,277= $348,644
Total revenue

7. Banyan Tree Holding Limited’s
Net Profit Margin
Net Profit Margin
(Net Profit/Sales)
2007
$’000
2008
$’000
Difference
Net Profit 102,441 18,347 (82.09%)
Sales 424,131 427,921 0.89%
Net Profit Ratio 24.15% 4.29% (19.87%)

8. BanyanTreeHolding
Limited’sNetProfitMargin
Net
Profit

9. Banyan Tree Holding Limited’s GP and
NP Margin Analysis
98,778
114,747
39,386
58,129
26,243
33,335
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
2007 2008
Expenses Analysis ($’000)
Salaries and related expense
administrative expense
Depreciation
Reasons :
(1) Increase headcounts for newly-opened
resorts, new spa operations and for the
new fund management business
(2) Higher expenses incurred on legal and
professional fees as a result of Tsunami
insurance claims and allowances
(3) Increase in depreciation expense due to
the opening of two new resort and higher
depreciation on several of the group
resorts due to upward revaluation in the
properties.
• Gross profit margin has increased by 1.22%, net profit margin has decrease by
19.87%  Higher costs and expenses

10. Shangri-La Asia Limited’s Gross Profit
Margin
Shangri-La Asia Limited
2008 2007
US $’000 US $’000
Gross Profit 802,022 725,278
Revenue/ Sales 1,353,271 1,219,248
Gross Profit Margin
( Gross Profit/ Sales)
59.27% 59.48%
Percentage Difference (0.21%)

11. Shangri-La Asia Limited
2008 2007
US$’000 US$’000
Net Profit 183, 467 374, 225
Revenue / Sales 1,353,271 1,219,248
Net Profit Margin
( Net Profit / Sales)
13.56% 30.69%
Percentage
Difference
(17.13%)
Shangri-La Asia Limited’s Net Profit
Margin

12. Gross Profit and Net Profit Ratio
Comparison
Competitor’s Gross Profit Margin is lower than Banyan Tree Holding while its
Net Profit margin is higher than the Group The reason is due to an increase in
revenue generated from its operation resulting a increase in Cost of Good Sold,
and a lower cost and expense compared to Banyan Tree Holding.
80.25% 81.47%
59.49% 59.27%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
2007 2008
Gross Profit Ratio
Banyan Tree Shangri La
24.15%
4.29%
30.69%
13.56%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
2007 2008
Net Profit Ratio

13. Conclusion on Banyan Tree Holding
Limited’s Profitability Analysis
Banyan Tree Holding’s revenue from its main activities has decreased during the
year. Its gross profit has increased by 1.22% while its net profit margin has
decreased by19.87%. Though the Group’s gross profit margin is higher than its
competitor, its net profit margin for 2008 are also lower compared to its competitor.
The poor performance in the Group’s net profit margin is due the (1) decrease in
revenue from its main activities , which is affected by the economic downturn and
negative political factors, (2) higher costs and expenses from the group’s expansion
projects and newly opened resorts and spa.
However despite the poor performance in 2008, the Group has several expansion
projects and has a strong pipelines for the years ahead. To finance its development
and maintain sustainability, funds such as Banyan Tree Indochina Hospitality Fund
were setup. Steps to enhance its internet marketing capabilities and to cut costs
have also been adopted. In addition throughout the years, the Group has
established itself and also won many recognition and awards. Thus its global
presence and with sustainability strategies taken, we can conclude that the group
profitability is adequate and sustainable.

14. Banyan Tree Holding Limited’s
Long-term Asset Investment Ratio
Fixed Asset Turnover
(Sales/Net Fixed Asset Balance)
2007
$’000
2008
$’000
Difference
Sales 421,859 412,612 (2.19%)
Net fixed asset balance 976,627 979,658 0.31%
Fixed Asset Turnover 0.432 0.421 (1.08%)

15. Banyan Tree Holding Limited’s
Long-term Asset Investment Ratio

16. Banyan Tree Holding Limited’s
Long-term Asset Investment Analysis
979,658
976,627
975,000
975,500
976,000
976,500
977,000
977,500
978,000
978,500
979,000
979,500
980,000
2008 2007
Property, Plant & Equipments ($’000)
Increased by 0.31%
Reasons increase in net fixed
assets balance:
• Expansion
During the year, there were
acquisition, construction and
renovation of various hotel
projects
 2 new resorts, Tree
Madivaru and Angsana Riads
Collection Morocco were
opened.
• 1.08% decrease in fixed assets turnover  Increase in net fixed assets balance

17. Shangri-La Asia Limited’s Fixed
Asset Turnover
Fixed Asset Turnover
(Sales/Net Fixed Asset Balance)
2007
US$’000
2008
US$’000
Difference
Sales 1,219,248 1,353,271 10.99%
Net fixed asset balance
3,260,931 3,789,324 16.20%
Fixed Asset Turnover
0.374 0.357 (1.68%)

18. Shangri-La Asia Limited’s Fixed
Asset Turnover

19. Banyan Tree Holding Limited’s
Long-term Asset Investment Analysis
0.432 0.421
0.374
0.357
0.000
0.050
0.100
0.150
0.200
0.250
0.300
0.350
0.400
0.450
0.500
2007 2008
Banyan Tree Holding Shangri La Asia Limited
• Higher Fixed Assets turnover
indicates:
• Inefficiency in the management of
fixed assets as compared to
Shangri-La
 Sales in Shangri-La has
increase by 10.99%
 Shangri-La had made some
expansion during the year
More efficient in generate
sales with its existing assets

20. Conclusion of Banyan Tree Holding
Limited’s Long-term Asset Management
Analysis
Fixed Asset turnover has decreased slightly by 2.49%. This is mainly due to the
opening of 2 new resorts and development of several resorts during the year,
which had attributed to an increase of net fixed assets balance by 0.31%. However
despite the expansion, sales from its main operation has decreased by 2.91%
while its competitor’s sales has increase as a result of expansion. Therefore, this
could indicate that Banyan Tree Holding is less efficient generate sales with its
existing assets.
However, the decrease in sales could also indicate that the return of the fixed
assts was not realised as yet since it was only invested during the year. The return
could only be earned in future. In addition for 2009, there are various its expansion
plans for the hotels and resort. The Group has strong pipeline of new projects for
the years ahead. Therefore, with the anticipation of future return of the invested
assets and the Group’s expansion plans, we can conclude that the company is
investing enough to safeguard future profitability.

21. Banyan Tree Holding Limited’s Debt to
Equity Ratio
Debt to Equity Ratio
(Total Liabilities/Shareholder’s
Equity)
2007
$’000
2008
$’000
Difference
Total Liabilities 655,164 678,718 3.60%
Shareholder’s Equity 804,493 788,645 1.97%
Debt to Equity Ratio 0.814 0.861 4.62%

22. Banyan Tree Holding Limited’s Debt to
Equity Ratio
Total Liabilities,
2008: $678,718
Total Liabilities, 2007:
$655,164

23. Banyan Tree Holding Limited ’s Debt to
Equity Ratio Analysis
348
1,527
0
16,158
100,000
127,250
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
2007 2008
Liabilities Analysis
Other Payable Deferred Income
Note Payable
Reasons for increase liabilities:
• Several expansion and refurbishment
works at hotels, properties increase of
construction payable under other payable
• Received government grant for the
acquisition of land use rights in China 
Increase deferred income
• $27,250,000 worth of note were issued
under the Medium Term Programme
increase note payable
• Debts to equity ratio increase by 4.62%  increase its reliance on debts to
finance its operation in 2008

24. Banyan Tree Holding Limited ’s
Coverage Ratio
Time Interest Earned Ratio
(Earnings before interest and
tax/Interest)
2007
$’000
2008
$’000
Difference
Earnings before interest and tax 92,163 55,725 39.54%
Interest Expense 16,421 18,096 10.20%
Time Interest Earned Ratio 5.61 3.08 (2.53)

25. Banyan Tree Holding Limited ’s
Interest Coverage Ratio
Earning before
interest and tax
Interest Expense

26. Banyan Tree Holding Limited’s Interest
Coverage Ratio Analysis
$16,421
$18,096
$15,500
$16,000
$16,500
$17,000
$17,500
$18,000
$18,500
2007 2008
Interest Expense
Interest Expense
10.20%
Reasons for increase in interest expense:
• High interest expense on issuance Medium
Term Notes
 Prior years Note Payable
 Interest ranges from 4.25% to 5.5%
• Interest in coverage has decrease from 5.61
in 2007 to 3.08 in 2008  ability to pay debts
and the number of times the Group can pay
interest from its current earning is lowered

27. Shangri-La Asia Limited’s Debt to
Equity Ratio
Debt to Equity Ratio
(Total Liabilities/Shareholder’s
Equity)
2007
US$’000
2008
US$’000
Difference
Total Liabilities
1,915,682 2,671,323 39.45%
Shareholder’s Equity
4,185,328 4,251,388 1.58%
Debt to Equity Ratio
0.628 0.458 (17.06%)

28. Shangri-La Asia Limited’s Debt
to Equity Ratio

29. Shangri-La Asia Limited’s
Coverage Ratio
Time Interest Earned Ratio
(Earnings before interest and
tax/Interest)
2007
US$’000
2008
US$’000
Difference
Earnings before interest and tax
373,344 163,165 (56.30%)
Interest Expense
79,297 53,973 (31.94%)
Time Interest Earned Ratio
4.17 3.02 (1.69)

30. Shangri-La Asia Limited’s Interest
Coverage Ratio
Earning before
interest and tax
Interest Expense

31. Banyan Tree Holding Limited ’s Financial
Leverage Analysis
• Banyan Tree Holding's debts to equity ratio in 2008 is higher than its competitor.
This indicates that Banyan Tree Holding is relying more on debts to finance its
operation as oppose to equity
• There is no significant difference in the interest coverage for both the groups in
2008
• High coverage ratio due to the volatility of the hospitality industry demand
elastic unstable income
0.814
0.861
0.628
0.458
0
0.2
0.4
0.6
0.8
1
2007 2008
Debts to Equity Ratio
Banyan Tree Holding Shangri La Asia Limited
5.61
3.08
4.71
3.02
0
1
2
3
4
5
6
2007 2008
Coverage Ratio

32. Conclusion of Banyan Tree Holding
Limited ’s Financial Leverage Analysis
The debts to equity ratio has decrease by 4.62% from 0.861 to 0.814. This is
mainly due to the (1) increase in construction payable which is attributable to
several expansion and refurbishment works to several of the hotels during the
year, and (2) $27,250,000 worth of notes were issued under Medium Term
Notes programme. coverage ratio has also decreased from 5.61 in 2007 to 3.08
in 2008 which is mainly due to the (1) high interest expense from the Medium
Term Notes.
Compared to its competitor, although there is no significant difference in
coverage ratio, its debt to equity is higher. This indicates Banyan Tree is relying
more on debts to finance its operation as oppose to equity, which is a cheaper
source of financing strategy as compared to equity. Though the coverage ratio
has decreased, indicating the ability to pay interest from its debts is lowered, the
Group has no issue of insolvency. Funds such as the Banyan Tree Indochina
Hospitality Fund and Banyan Tree Capital were set up to enable the Group to
have sufficient funds to pay off its debts. With a cheaper financing strategy and
still able to achieve a similar coverage ratio with its competitor, we can conclude
that the finance of the company is sensibly and effectively structured.