Mandarin Oriental International Limited
Mandarin Oriental International — Mandarin Oriental Hotel Group — FY2018 Earnings Presentation
37 slides from Mandarin Oriental International's earnings presentation, 2019
Slide 1: 2018 Annual Results
2018 ANNUAL RESULTS Mandarin Oriental Hotel Group
Slide 2: 2018 Performance and Highlights
2018 Performance and Highlights • 19% increase in underlying profit • Mandarin Oriental Hyde Park, London to re-open in April • Redevelopment of The Excelsior announced • Launch of Fans of M.O. • Development progress – seven new projects announced in 2018 • New hotels in Dubai and Doha recently open
Slide 3: 2018 Annual Results Highlights
2018 Annual Results Highlights US $ m 2018 2017 Combined Total Revenue * 1,398 1,380 Group’s Total Revenue # 614 611 Underlying EBITDA 179 158 * Includes revenue from the total portfolio of owned and managed hotels # Includes revenue from the Group’s subsidiary hotels as well as the Group’s manageme
Slide 4: 2018 Annual Results Highlights
2018 Annual Results Highlights 2018 2017 Underlying Profit Attributable to Shareholders (US $ m) 65 55 Profit Attributable to Shareholders (US $ m) 44 55 Underlying Earnings per Share (US ¢) 5.16 4.37 Total Dividends per Share (US ¢) 3.00 3.00 Adjusted Net Asset Value per Share (US $) 4.62 4.57 MAND
Slide 5: 2018 RevPAR Performance
2018 RevPAR Performance 600 14% 500 503 400 441 4% US $ 300 368 382 9% 2017 9% 2018 200 254 277 192 209 100 0 Asia EMEA* America Total All references to RevPAR are in US dollar terms on a like-for-like basis, unless otherwise stated, and includes all hotels that were in the portfolio for the entire
Slide 6: Current Global Portfolio
CURRENT GLOBAL PORTFOLIO Prague London Paris Munich Boston Geneva New York Barcelona Lake Como Shanghai Tokyo Madrid Milan Washington DC Marrakech Bodrum Guangzhou Doha Miami Dubai Hong Kong Sanya Taipei Bangkok Macau Canouan Kuala Lumpur Singapore Jakarta Santiago 32 hotels MANDARIN ORIENTAL
Slide 7: 2018 Hotel Performance Asia – Overall RevPAR up 9%
2018 Hotel Performance Asia – Overall RevPAR up 9% Mandarin Oriental, Hong Kong Record RevPAR performance The Excelsior, Hong Kong 11% increase in RevPAR Tokyo Higher average rates from leisure segment Jakarta Notably improved occupancy (+18%) Singapore Strong demand across all segments Bangkok Rema
Slide 8: 2018 Hotel Performance EMEA – Overall RevPAR up 14%
2018 Hotel Performance EMEA – Overall RevPAR up 14% London Newly renovated rooms drove higher rates, prior to the fire Paris Improved demand across the city, impacted by demonstrations in final quarter Munich Remains clear market leader Geneva Shortfalls in corporate and leisure segments Madrid Clos
Slide 9: 2018 Hotel Performance America – Overall RevPAR up 4%
2018 Hotel Performance America – Overall RevPAR up 4% Boston Remains market leader New York 6% increase in RevPAR Miami 7% increase in average rates Washington D.C. Competitive pressure on average rates MANDARIN ORIENTAL
Slide 10: Strategic Review
Strategic Review • Vision: to be recognised as the world’s best luxury hotel group • Launch of unique guest recognition programme, Fans of M.O. • Consistently grow portfolio by average of three properties a year • 13 management agreements announced in 2017 and 2018 • Owned assets provide platform fo
Slide 11: Development
DEVELOPMENT
Slide 12: Development Portfolio
DEVELOPMENT PORTFOLIO Moscow London Munich Beijing New York Istanbul Barcelona Boca Raton Dubai Shenzhen Honolulu Bangkok Grand Cayman Muscat Manila Phuket Saigon Bali Expected to open within 5 years Hotels (15) Residences (12) MANDARIN ORIENTAL
Slide 13: Development Strategy
Development Strategy • Build portfolio in strategic city centre locations where we are absent • Expand presence in existing markets • Develop resort and Residences portfolio MANDARIN ORIENTAL
Slide 14: Number of Announced New Projects
Number of Announced New Projects 8 7 6 No. of Projects 5 4 3 2 1 0 2014 2015 2016 2017 2018 Year * Excluding the previously announced projects in Beirut (2015), Melbourne (2017) and Viña del Mar (2018) which are currently on hold MANDARIN ORIENTAL
Slide 15: New Projects
New Projects • Seven new management contracts announced in 2018 • Mandarin Oriental Residences at 685 Fifth Avenue recently announced in 2019 MANDARIN ORIENTAL
Slide 16: New Project: Mandarin Oriental, Lago di Como
New Project Mandarin Oriental, Lago di Como (Management contract) • 76 rooms and suites housed in nine villas • Located on the shores of Lake Como • First resort in western Europe MANDARIN ORIENTAL
Slide 17: New Project: Residences, Barcelona
New Project The Residences by Mandarin Oriental, Barcelona • 34 luxury residences • Due to open in 2020 MANDARIN ORIENTAL
Slide 18: New Project: Mandarin Oriental, Saigon
New Project Mandarin Oriental, Saigon (Management contract) • 228 rooms and suites • Due to open in 2020 • First property in Vietnam MANDARIN ORIENTAL
Slide 19: New Project: Mandarin Oriental, Muscat
New Project Mandarin Oriental, Muscat (Management contract) • 151-room hotel with 150 branded residences • Scheduled to open in 2021 MANDARIN ORIENTAL
Slide 20: New Project: Mandarin Oriental, Grand Cayman
New Project Mandarin Oriental, Grand Cayman (Management contract) • 100-room hotel with 89 branded residences • Scheduled to open in 2021 MANDARIN ORIENTAL
Slide 21: New Project: Mandarin Oriental, Moscow
New Project Mandarin Oriental, Moscow (Management contract) • 65-room hotel with 137 branded residences • Due to open in 2021 MANDARIN ORIENTAL
Slide 22: New Project: Residences at Fifth Avenue
New Project Mandarin Oriental Residences at 685 Fifth Avenue • 69 luxury residences • Scheduled for completion in 2021 MANDARIN ORIENTAL
Slide 23: New Project: Mandarin Oriental, Phuket
New Project Mandarin Oriental, Phuket (Management contract) • 107 rooms • Scheduled to open in 2022 MANDARIN ORIENTAL
Slide 24: Hotel Openings
Hotel Openings Mandarin Oriental Jumeira, Dubai Mandarin Oriental, Doha (Both management contracts) • First two hotels in the Middle East • Opened in mid-February 2019 • At least one further hotel opening expected this year: • Mandarin Oriental Wangfujing, Beijing MANDARIN ORIENTAL
Slide 25: Redevelopment: The Excelsior, Hong Kong
Redevelopment The Excelsior, Hong Kong (100% ownership) • Redevelopment into a mixed-use commercial building • Expected to take some 6 years • Cost: approx. US$650 million • Begin to unlock value of this historic site MANDARIN ORIENTAL
Slide 26: Financial Review
FINANCIAL REVIEW
Slide 27: Total Underlying EBITDA Performance
Financial Review Total Underlying EBITDA Performance US $ m 2018 2017 Underlying EBITDA 179 158 Asia Improved performance from all subsidiaries, associates and joint ventures EMEA Better results in London and Paris, partially offset by Madrid restoration America Broadly flat EBITDA result Management
Slide 28: Fire at Mandarin Oriental Hyde Park, London
Financial Review Fire at Mandarin Oriental Hyde Park, London • Group received interim insurance payments totalling US$66 million • US$31 million to cover operating costs and loss of profits was recognised as underlying business performance • US$30 million to restore damaged property • US$5 million f
Slide 29: Non-trading Items
Financial Review Non-trading Items US $ m 2018 2017 Fire at Mandarin Oriental Hyde Park, London Repair expenses and write-off of tangible assets and other incidental expenses (29) - Insurance recovery for replacement of tangible assets and other incidental expenses 30 - Closure of The Excelsior, Hon
Slide 30: Cash Flow Statement – Operating Activities
Financial Review Cash Flow Statement – Operating Activities US $ m 2018 2017 Operating activities EBITDA from subsidiaries 156 128 Dividends and interest from associates and JVs 8 7 Net interest paid (13) (11) Tax paid (19) (13) Other (principally working capital) 14 9 Total 146 120 • Weighted avera
Slide 31: Cash Flow Statement – Investing Activities
Financial Review Cash Flow Statement – Investing Activities US $ m 2018 2017 Investing activities Net capital expenditure on existing properties* (53) (83) Payment on Munich expansion - (3) Net advance to associates and joint ventures (8) (10) Others (8) (6) Total (69) (102) * Including capex relate
Slide 32: Summary Cash Flow Statement
Financial Review Summary Cash Flow Statement US $ m 2018 2017 Operating activities 146 120 Investing activities (69) (102) Financing activities Net drawdown of borrowings 28 28 Dividends paid (38) (50) Net increase/(decrease) in cash 67 (4) Cash and cash equivalents at 1st January 184 183 Effect of
Slide 33: Net Debt
Financial Review Net Debt US $ m 2018 2017 Net debt 285 327 Adjusted shareholders’ funds* 5,833 5,747 Gearing 5% 6% Adjusted net asset value per share (US $) 4.62 4.57 * Shareholders’ funds have been adjusted to include the market value of the Group’s ownership interest in its freehold and leasehold
Slide 34: Financial Review: Debt and Liquidity
Financial Review • Approximately 44% of Group’s debt hedged • Average remaining tenor of Group’s borrowings is 0.8 years – advanced discussions underway, both major facilities expected to be refinanced ahead of time • US$247 million of cash and US$78 million of undrawn committed facilities MANDARIN
Slide 35: Future Significant Capital Commitments
Financial Review Future Significant Capital Commitments US $ Timing Madrid renovation (Group’s 50% share) 44m 2019-20 Munich extension 141m 2019-23 Redevelopment of The Excelsior site 589m 2019-25 Total 774m • The Group’s strong balance sheet is well-placed to fund capital commitments through the us
Slide 36: 2019 Outlook
2019 Outlook • At least four new openings during the year • Completion of Bangkok renovation, Madrid restoration on-going • Earnings substantially impacted by closure of The Excelsior (US$24 million contribution to underlying profit in 2018) • Results will benefit from the re-opening of London prope
Slide 37: Questions to investors@mohg.com
Questions to investors@mohg.com
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