Galaxy Entertainment Group Limited · HKEX:27
Galaxy Entertainment — H1 2012 Earnings Presentation
31 slides from Galaxy Entertainment's earnings presentation, Aug 27, 2012
Slide 1: Interim Results 2012
Interim Results 2012 August 27, 2012
Slide 2: Executive Summary
Executive Summary GEG • Half year revenue doubled year-on-year to $28.3 billion • Half year EBITDA of $4.7 billion, up 159% year-on-year • Quarterly EBITDA of $2.6 billion in Q2, the 15th consecutive quarter of Group EBITDA growth • Group Annualised LTM EBITDA of $8.6 billion • Net Profit Attributab
Slide 3: Q2 2012 Results
Q2 2012 RESULTS August 27, 2012 3
Slide 4: Galaxy Entertainment Group
Galaxy Entertainment Group August 27, 2012 4
Slide 5: GEG Revenue Summary Q2 2012
GEG Revenue Summary Q2 2012 Revenue in Q2 grew 91% YoY to $15.2 billion driven by Galaxy Macau™’s fourth full quarter of operation GEG Revenue (HK$’m) $15,158 Q2 YoY Q2 to Q1 2012 $13,164 $538 $39 $43 $402 GEG Total +91% +15% $5,825 $7,941 $5,486 Galaxy Macau™ +267%* +21% $165 $355 StarWorld +16% +6
Slide 6: GEG EBITDA Summary Q2 2012
GEG EBITDA Summary Q2 2012 Group EBITDA grew 131% YoY in Q2 2012 to $2.6 billion • GEG reports 15th consecutive quarter EBITDA growth in Q2 with $2.6 billion • Galaxy Macau™ contributes a healthy $1.6 billion of EBITDA • StarWorld reports 16th consecutive quarter of EBITDA growth with $906 million G
Slide 7: GEG Latest 12 Month Revenue Summary
GEG Latest 12 Month Revenue Summary LTM Revenue ended June 2012 grew 129% to $55.8 billion GEG (HK$’m) $55,841 Galaxy Macau™ StarWorld Others $48,624 $2,026 $41,186 $1,969 $23,835 $32,280 $2,297 $23,047 $24,358 $2,495 $22,514 $2,711 $21,011 $29,980 $19,263 $23,608 $16,375 $8,774 $2,384 Q2 2011 Q3 20
Slide 8: GEG Latest 12 Month EBITDA Summary
GEG Latest 12 Month EBITDA Summary LTM EBITDA ended June 2012 grew 182% to $8.6 billion GEG (HK$’m) Galaxy Macau™ StarWorld Others $8,643 $7,190 $205 $162 $5,749 $3,364 $213 $3,143 $4,236 $3,059 $174 $2,955 $181 $2,713 $5,074 $3,885 $2,502 $2,581 $1,349 $376 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 A
Slide 9: Acknowledgment of Excellence
Acknowledgment of Excellence Date Awards Organization World’s Distinguished and Leisure Hotel Group Award Capital CEO Magazine & Capital Entrepreneur Magazine 2012 Jun 世界級尊尚休閒娛樂集團大獎 《資本企業家》澳門榮譽企業巡禮 2012 GEG 2012 May Best Investor Relations FinanceAsia Magazine The Best New Hotel (Macau) TTG China Tr
Slide 10: Macau: World Class, Asian Heart
MACAU wm PY oR “World Class, Asian Heart” TIRE > TERSEOHM 4 August 27, 2012 10
Slide 11: Galaxy Macau
Galaxy Macau August 27, 2012 11
Slide 12: Galaxy Macau Overview
Galaxy Macau Overview Positive momentum continued into Q2 2012 as EBITDA grew 20% QoQ to $1.6 billion with 18% margin Revenue Q2 YoY ** Q2 vs Q1 2012 • Total Revenue and EBITDA of $8.8 billion Galaxy Macau™ Total +267% +21% and $1.6 billion, respectively VIP Gaming +255% +23% Mass Gaming +319% +8%
Slide 13: StarWorld Macau
3% jah StarWorld:-Macau August 27, 2012
Slide 14: StarWorld
Bie i Ze Sta rWorld 2 tt GEG August 27, 2012 14
Slide 15: StarWorld Overview
StarWorld Overview Reported 16th consecutive quarter of EBITDA growth in Q2 2012 with $906 million, up 32% YoY Revenue Q2 YoY Q2 vs Q1 2012 • Revenue increased by 16% YoY to $5.8 StarWorld Total +16% +6% billion VIP Gaming +12% +8% Mass Gaming +49% (3)% • EBITDA of $906 million, with margin 16% Slot
Slide 16: City Clubs
© UR GEG +) BRA GEG CITY CLUBS August 27, 2012 16
Slide 17: City Clubs
City Clubs City Clubs reported Q2 EBITDA of $39 million City Clubs EBITDA (HK$’m) $49 $43 $39 2011 Q2 2012 Q1 2012 Q2 August 27, 2012 17
Slide 18: Construction Materials
Construction Materials August 27, 2012 18
Slide 19: Construction Materials
Construction Materials EBITDA grew 32% YoY to $145 million in Q2 2012 after seasonal Q1 Construction Materials EBITDA (HK$’m) $145 $110 $83 2011 Q2 2012 Q1 2012 Q2 August 27, 2012 19
Slide 20: 1H 2012 Results
1H 2012 RESULTS August 27, 2012 20
Slide 21: GEG Revenue Summary 1H 2012
GEG Revenue Summary 1H 2012 Revenue in first half 2012 grew 107% YoY to $28.3 billion driven by StarWorld & Galaxy Macau™ GEG Revenue (HK$’m) $28,322 $27,519 1H 12 YoY 1H12 to 2H11 $940 $927 $82 $77 GEG Total +107% +3% $11,311 $12,524 Galaxy Macau™ +571%* +14% $13,667 $646 $647 StarWorld +13% (10)%
Slide 22: GEG EBITDA Summary 1H 2012
GEG EBITDA Summary 1H 2012 Group EBITDA grew 159% YoY to $4.7 billion in the first half of 2012 led by StarWorld & Galaxy Macau™ GEG EBITDA (HK$’m) $4,712 1H 12 YoY 1H12 to 2H11 $3,931 $228 $82 GEG Total +159% +20% $255 $77 $1,758 Galaxy Macau™ +663%* +30% $1,606 $1,818 StarWorld +30% +9% $178 $106
Slide 23: GEG 1H 2012 - NPAS
GEG 1H 2012- NPAS NPAS grew more than 9 times to $3.4 billion • Includes Galaxy Macau™ for full period in 2012 vs 47 days in 2011 (in HK$ mn) 1H 2011 1H 2012 Change Total Revenue (Statutory Basis) 13,667 28,322 107% EBITDA 1,818 4,712 159% Change in Fair Value of Derivative under CB (165) -- Net Pro
Slide 24: Liquidity and Financing Update
Liquidity and Financing Update August 27, 2012 24
Slide 25: Cash on Hand & Long Term Debt
Cash on Hand & Long Term Debt GEG remains well capitalized with cash of $11 billion at June 30, 2012 including restricted cash of $1.9 billion • Current gearing ratio equals 7% • Virtually “net cash” GEG Total Debt (HK$’m) GEG Debt Profile (HK$’m) RMB Bond Bank Loans CB 2011 Dec 31, 2010 Dec 31, 201
Slide 26: Phase 2 Update
Phase 2 Update August 27, 2012 26
Slide 27: Galaxy Macau Phase 2
Galaxy Macau Phase 2 Recently launched Galaxy Macau™ Phase 2 on schedule to complete in Mid-2015 • Two new luxury hotels, the first ever all suite The Ritz-Carlton and the world’s largest JW Marriott for a grand total of approx. 3,600 rooms across 5 luxury hotels • Greatly expanded retail space to
Slide 28: Galaxy Macau Phase 2
Galaxy Macau Phase 2 Piling remains on schedule to be completed by year end with over 650 workers on site August 27, 2012 28
Slide 29: Summary Positioned for Growth
Summary Positioned for Growth Operations • GEG reports $2.6 billion EBITDA in Q2 2012 for 15th consecutive quarter of EBITDA growth • Galaxy Macau™ reports QoQ EBITDA growth of 20% to • Galaxy commenced $1.6 billion after 4th full quarter of operation with a vision • StarWorld reports $906 million o
Slide 30: 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 31: Interim Results 2012
Interim Results 2012 August 27, 2012
Galaxy Entertainment Group — H1 2012 Earnings Presentation on 6ix