Kangwon Land, Inc. · KRX:035250
Kangwon Land — Q4 2006 Earnings Presentation
9 slides from Kangwon Land's earnings presentation, Feb 5, 2007
Slide 1: 4Q Presentation
4Q Presentation Feb. 05, 2007 Kangwon Land
Slide 2: Summary of 4Q
Summary of 4Q · Overview · Analysis of casino sales · Cost analysis · Analysis of ski resort impact 2006 Overview 2007 Outlook
Slide 3: 4Q Overview
Ⅰ. 4Q … 1) Overview Quarterly sales Summary on Income statement (KRW Bil.) (KRW Bil.) 2005 2006 240 240 244 I tem ’06.4Q YoY(%) QoQ(%) 210 206 Sales 244 27.9% 1.7% 198 191 187 Cost of 125 38.6% 24.2% sales SG & A 51 113.2% 42.2% Operating Cost 69 -11.0% -34.0% Ordinary 80 18.0% -21.0% Profit 1Q 2Q 3
Slide 4: Analysis of casino sales
Ⅰ. 4Q … 2) Analysis of casino sales Sales 195 Implication Table 191 (KRW Bil) 191 158 ● Table sales : +20.3%(YoY), -2.0%(QoQ), - Total drop amount was increased by 40% YoY due to the crackdown of illegal gaming market and opening ski resort. ’05.4Q (VIP Drop amount : 65% up YoY) ’06.4Q ’06.3Q ’06.4Q
Slide 5: Cost analysis
Ⅰ. 4Q … 3) Cost analysis Cost of sales and SG&A Implication (% of sales) ● Cost of sales (47% 51%) 11% 71% - Comp & Loss increase : +71.7% YoY (KRW 18.6Bil.) 60% (Loss : 14Bil., Comp : 4.6Bil.) 21% SG&A - Cost of Ski resort : KRW 13.3Bil. 13% (Depreciation : 1.3Bil., Other cost : 12Bil.) ● SG&A (13%
Slide 6: Analysis of Ski resort impact
Ⅰ. 4Q … 4) Analysis of Ski resort impact Status of casino and main hotel Status - Casino - Main hotel Item Sales(Mil.won) Visitors(Persons) Item Sales(Mil,won) Visitors(Persons) 2005. 12.8~31 53,533 108,281 2005. 12.8~31 5,511 175,931 Daily average 2,222 4,512 Daily average 230 7,330 2006. 12.8~31 5
Slide 7: 2006 Overview
Ⅱ. 2006 Overview Sales (+22.5 Bil.won, +2.7%) CAPEX (63% spending of Plan) Sales - Casino sales : +2.1% (17.8Bil.) - Plan 2006 : 438Bil.won, Net Profit (Table +3.9%, Machine -10.3%) Spending : 275Bil.won +2.7% 869 847 (KRW Bil.) - Other resort sales are in vigor : * Maintenance related : 77% +28%, 4
Slide 8: 2007 Outlook
Ⅲ. 2007 Outlook Profit/Loss related Investment related Positive aspect Remainder of ski/condo. Resort Sales increase of casino Casino expansion Normalization of ski resort sales Support other coalmining area Synergy impact to Casino from Ski The 2nd phase investment related Negative aspect Maintain
Slide 9: Thank you !!
Thank you !!