Galaxy Entertainment Group Limited · HKEX:27
Galaxy Entertainment — H1 2014 Earnings Presentation
24 slides from Galaxy Entertainment's earnings presentation, Aug 19, 2014
Slide 1: Interim Results 2014
Interim Results 2014 August 19, 2014
Slide 2: Executive Summary
Executive Summary GEG: Record Half Year Revenue, Adjusted EBITDA and NPAS • Half year revenue increased 25% year-on-year to $38.4 billion • Half year Adjusted EBITDA of $7.3 billion, up 26% year-on-year • Half year net profit attributable to shareholders grew 29% year-on-year to $6.0 billion • Secon
Slide 3: Q2 2014 Results
© HU GEG BR GEG Q2 2014 RESULTS Aug 2014 3
Slide 4: GEG Revenue Summary Q2 2014
GEG Revenue Summary Q2 2014 Group revenue in Q2 2014 grew 16% YoY to $18.2 billion Q2 Q1 to Q2 14’ GEG Revenue (HK$’m) YoY QoQ $20,211 $498 $18,196 GEG Total +16% (10)% $48 $521 $15,658 $44 $594 $6,849 Galaxy Macau™ +32% (5)% $5,492 $48 $5,791 StarWorld (5)% (20)% $12,816 $12,139 City Clubs* (8)% (8
Slide 5: GEG EBITDA Summary Q2 2014
GEG EBITDA Summary Q2 2014 Group EBITDA in Q2 2014 grew 15% YoY despite playing unlucky in VIP GEG EBITDA (HK$’m) Q2 Q1 to Q2 14’ YoY QoQ $3,827 $3,461 $73 $48 +15% (10)% $3,021 $114 GEG Total $1,087 $44 $131 $822 $48 $885 Galaxy Macau™ +27% (5)% $2,780 $2,649 StarWorld (7)% (24)% $2,090 City Clubs*
Slide 6: GEG Latest 12 Month EBITDA Summary
GEG Latest 12 Month EBITDA Summary LTM EBITDA ended June 30, 2014 climbed 29% to $14.1 billion GEG (HK$’m) Galaxy Macau™ StarWorld Others $14,075 $13,635 $12,575 $11,549 $27 $10,923 $44 $3,855 $56 $3,918 $42 $3,692 $3,302 $3,235 $9,690 $10,249 $8,191 $8,839 $7,646 $(29) 2013 Q2 2013 Q3 2013 Q4 2014
Slide 7: Galaxy Macau
Galaxy Macau Aug 2014 7
Slide 8: Galaxy Macau Q2 2014
Galaxy Macau Q2 2014 Galaxy Macau™ Q2 2014 EBITDA grew 27% YoY to $2.6 billion Revenue Q2 Q1 to Q2 2014 YoY QoQ • Total revenue of $12.1 billion increased 32% YoY Galaxy Macau™ Total +32% (5)% VIP Gaming # +40% (4)% • VIP revenue grew 40% YoY to $8.4 billion with +19% (9)% Mass Gaming modest bad lu
Slide 9: StarWorld Macau
$i + i8% StarWorld Macau Aug 2014
Slide 10: StarWorld Macau Q2 2014
StarWorld Macau Q2 2014 StarWorld Macau Q2 2014 EBITDA declined 7% to $822 million due to worst VIP luck in history Q2 Q1 to Q2 2014 Revenue YoY QoQ • Total revenue of $5.5 billion declined 5% YoY StarWorld Total (5)% (20)% VIP Gaming # (11)% (23)% • VIP revenue declined 11% YoY to $4.2 billion Mass
Slide 11: City Clubs
City Clubs City Clubs’ Q2 2014 EBITDA of $44 million City Clubs EBITDA (HK$’m) $48 $48 $44 2013 Q2 2014 Q1 2014 Q2 Aug 2014 11
Slide 12: Construction Materials
Construction Materials Construction Materials’ Q2 2014 EBITDA of $114 million Construction Materials EBITDA (HK$’m) $131 $114 $73 2013 Q2 2014 Q1 2014 Q2 Aug 2014 12
Slide 13: Acknowledgment of Excellence
Acknowledgment of Excellence Selected Awards and Recognition in 2014 Award Organization Best Managed Companies in Asia 2014 – Gaming Euromoney Magazine 亞洲最佳管理公司2014 – 博彩業 《歐洲貨幣》雜誌 GEG Casino Operator of the Year Australia / Asia International Gaming Awards 年度最佳娛樂場營運商 (澳洲 / 亞洲) 國際博彩業大獎 Travel Weekly
Slide 14: Interim Results 2014
INTERIM RESULTS 2014 Aug 2014 14
Slide 15: GEG Revenue Summary 1H 2014
GEG Revenue Summary 1H 2014 Revenue in first half 2014 grew 25% YoY to $38.4 billion driven by Galaxy Macau™ GEG Revenue (HK$’m) $38,407 1H 14’ YoY 2H 13’ to 1H 14’ $35,219 $1,019 $92 +25% +9% $30,813 $1,399 GEG Total $87 $1,013 $12,341 $94 $11,952 Galaxy Macau™ +38% +15% $11,566 StarWorld +7% +3% $
Slide 16: GEG EBITDA Summary 1H 2014
GEG EBITDA Summary 1H 2014 Group EBITDA increased 26% YoY to $7.3 billion in the first half of 2014 led by Galaxy Macau™ despite StarWorld’s unlucky VIP GEG EBITDA (HK$’m) $7,288 $6,787 $187 1H 14’ YoY 2H 13’ to 1H 14’ $297 $92 $5,788 $87 $1,909 $191 GEG Total +26% +7% $1,946 $94 $1,746 Galaxy Macau
Slide 17: GEG 1H 2014 NPAS
GEG 1H 2014 NPAS 1H 2014 NPAS grew 29% to a record $6.0 billion (in HK$ mn) 1H 2013 1H 2014 14/13 var Total Revenue (Statutory Basis) 30,813 38,407 25% EBITDA 5,788 7,288 26% Net Profit attributable to shareholders (NPAS) 4,646 5,971 29% Aug 2014 17
Slide 18: Cash on Hand and Long-term Debt Update
Cash on Hand and Long-term Debt Update GEG continues to remain well capitalized with Cash of $14.4 billion at June 30, 2014 including restricted cash of $0.5 billion and a “Net Cash” position of $14.1 billion • Remain virtually debt free at June 30, 2014 and further reduced debt by $102 million from
Slide 19: GEG Cotai Development Update
GEG Cotai Development Update Aug 2014 19
Slide 20: Progress of Galaxy Macau Phase 2
Progress of Galaxy Macau™ Phase 2 Aug 15, 2014 Aug 2014 20
Slide 21: Cotai and Hengqin Island Development Update
Cotai and Hengqin Island Development Update Galaxy Macau™ Phase 2 • Remains on budget and on schedule to complete as Macau’s next major project by mid-2015 • Virtually doubles the footprint of Phase 1 with expanded hotel capacity and significant retail offering Cotai Phases 3 & 4 • Site investigatio
Slide 22: Summary Positioned for Growth
Summary Positioned for Growth Corporate • Record half year revenue of $38.4 billion and EBITDA of $7.3 billion in 2014 • Record half year net profit attributable to shareholders grew 29% YoY to $6.0 billion • Previously announced special dividend of $0.70 per share paid on July 31, 2014 • Galaxy com
Slide 23: Disclaimer
Disclaimer This document and any verbal presentation or discussion have been prepared by Galaxy Entertainment Group Limited (the “Company”) solely for your personal reference. The information provided has not been independently verified. No representation or warranty express or implied is made as to
Slide 24: Interim Results 2014
Interim Results 2014 August 19, 2014
Galaxy Entertainment Group — H1 2014 Earnings Presentation on 6ix