Galaxy Entertainment Group Limited · HKEX:27
Galaxy Entertainment — Q4 2021 Earnings Presentation
31 slides from Galaxy Entertainment's earnings presentation, Feb 23, 2022
Slide 1: Q4 and Annual Results 2021
Q4 and Annual Results 2021 23 February, 2022
Slide 2: Letter from the Chairman of GEG
Letter from the Chairman of GEG I would like to take this opportunity to provide you with a broad market overview and to review the financial performance of GEG in 2021. Macau like the rest of the world continued to experience the impact of COVID-19 throughout 2021, with sporadic outbreaks in Mainla
Slide 3: Executive Summary
Executive Summary GEG: Continues to be Impacted by COVID and Travel Restrictions Q4 2021 • Q4 Group Net Revenue of $4.8 billion, down 7% year-on-year and up 11% quarter-on-quarter • Q4 Group Adjusted EBITDA of $1.0 billion, up 3% year-on-year and up 107% quarter-on-quarter • Q4 Group Adjusted EBITDA
Slide 4: Executive Summary: Galaxy Macau
Executive Summary Galaxy Macau™: Continues to be Impacted by COVID and Travel Restrictions Q4 2021 • Q4 Net Revenue of $3.2 billion, down 3% year-on-year and up 13% quarter-on-quarter • Q4 Adjusted EBITDA of $763 million, up 4% year-on-year and up 68% quarter-on-quarter • Played lucky in Q4 which in
Slide 5: Executive Summary: StarWorld Macau
Executive Summary StarWorld Macau: Continues to be Impacted by COVID and Travel Restrictions Q4 2021 • Q4 Net Revenue of $669 million, down 30% year-on-year and up 1% quarter-on-quarter • Q4 Adjusted EBITDA of $44 million, down 71% year-on-year and up 76% quarter-on-quarter • Played lucky in Q4 whic
Slide 6: Executive Summary: Broadway Macau
Executive Summary Broadway Macau™: A Unique Family Friendly Resort, Strongly Supported By Macau SMEs Q4 2021 • Q4 Net Revenue of $14 million, down 13% year-on-year, flat quarter-on-quarter • Q4 Adjusted EBITDA of $(22) million, versus $(19) million in Q3 2021 and $(28) million in Q4 2020 • There was
Slide 7: Executive Summary: Balance Sheet
Executive Summary Balance Sheet: Healthy and Liquid Balance Sheet • As at 31 December 2021, cash and liquid investments were $33.4 billion and net cash was $27.0 billion • As at 31 December 2021, debt of $6.4 billion primarily reflects ongoing treasury yield management initiatives with minimal core
Slide 8: Executive Summary: Development Update
Executive Summary Development Update: Continuing to Pursue Development Opportunities • Continue to make ongoing progressive enhancements to our resorts to ensure that they remain competitive and appealing to our guests • Cotai Phases 3 & 4 – Phase 3 is effectively completed and our efforts are firml
Slide 9: 2021 Annual Results
2021 Annual Results February 2022 9
Slide 10: GEG Revenue Summary FY2021
GEG Revenue Summary FY2021 Fiscal 2021 Net Revenue increased 53% YoY to $19.7 billion Full Year GEG Net Revenue (HK$’m) 2020 2021 $19,695 Net Revenue YoY GEG Total +53% $12,876 Galaxy Macau™ +71% GM, $13,276 StarWorld Macau +47% GM, $7,779 BW, $94 BW, Broadway Macau™ (39)% $57 CC, $27 SW, $3,278 CC,
Slide 11: GEG Adjusted EBITDA FY2021
GEG Adjusted EBITDA FY2021 Full Year Group Adjusted EBITDA of $3.5 billion versus $(1.0) billion in 2020 Full Year GEG Adjusted EBITDA (HK$’m) 2020 2021 Adjusted EBITDA YoY $3,537 GEG Total +447% GM, $2,905 Galaxy Macau™ +423% CC, $62 $(1,020) SW, $374 StarWorld Macau +236% CC, Reversal, CMD,$1,118
Slide 12: GEG FY2021 NPAS
GEG FY2021 NPAS FY2021 Net Profit Attributable to Shareholders of $1.3 billion, including $283 million of non-recurring items in 2021, Vs loss of $4.0 billion in FY2020 (in HK$'m) FY2020 FY2021 YoY% Net Revenue $ 12,876 $ 19,695 53% Adjusted EBITDA $ (1,020) $ 3,537 447% Net Profit / (Loss) attribut
Slide 13: Cash, Debt and Dividend Update
Cash, Debt and Dividend Update Balance Sheet: Healthy and Liquid Balance Sheet • As at 31 December 2021, cash and liquid investments were $33.4 billion and net cash was $27.0 billion • As at 31 December 2021, debt of $6.4 billion primarily reflects ongoing treasury yield management initiatives with
Slide 14: Q4 2021 Results
Q4 2021 Results February 2022 14
Slide 15: GEG Revenue Q4 2021
GEG Revenue Q4 2021 Q4 Group Net Revenue of $4.8 billion, down 7% YoY and up 11% QoQ GEG Net Revenue (HK$’m) 2020 Q4 2021 Q3 2021 Q4 YoY QoQ $5,103 GEG Total (7)% +11% $4,752 $4,282 Galaxy Macau™ (3)% +13% GM, $3,318 GM, $3,214 StarWorld Macau (30)% +1% GM, $2,836 BW, BW, $16 BW, $14 Broadway Macau™
Slide 16: GEG Adjusted EBITDA Q4 2021
GEG Adjusted EBITDA Q4 2021 Q4 Group Adjusted EBITDA of $1.0 billion, up 3% YoY and 107% QoQ • Normalized Q4 Adjusted EBITDA of $818 million, after adjusting for a one-off expense reversal benefit of $0.2 billion and good luck of approximately $57 million, down 16% YoY and up 49% QoQ GEG Adjusted EB
Slide 17: Galaxy Macau
Galaxy Macau February 2022 17
Slide 18: Galaxy Macau Q4 2021
Galaxy Macau Q4 2021 Galaxy Macau™ Q4 Adjusted EBITDA of $763 million, up 4% YoY and up 68% QoQ Galaxy Macau YoY QoQ Net Revenue of $3.2 billion, down 3% YoY and up 13% QoQ Total Gross Revenue (8)% +8% • VIP win of $542 million, down 53% YoY and 40% QoQ Total Net Revenue (3)% +13% Adjusted EBITDA
Slide 19: StarWorld Macau
StarWorld Macau February 2022 19
Slide 20: StarWorld Macau Q4 2021
StarWorld Macau Q4 2021 StarWorld Macau Q4 Adjusted EBITDA of $44 million, down 71% YoY and up 76% QoQ StarWorld Macau YoY QoQ Net Revenue of $669 million, down 30% YoY and up 1% QoQ Total Gross Revenue (35)% (6)% • VIP win of $171 million, down 64% YoY and 48% QoQ Total Net Revenue (30)% +1% Adjust
Slide 21: Broadway Macau
Broadway Macau™ February 2022 21
Slide 22: Broadway Macau Q4 2021
Broadway Macau™ Q4 2021 Broadway Macau™ Q4 Adjusted EBITDA of $(22) million Vs $(28) million in Q4 2020 and $(19) million in Q3 2021 Net Revenue of $14 million, down 13% YoY and flat QoQ Broadway Macau™ YoY QoQ • Hotel occupancy for Q4 was 3%, due to the fact that the hotel’s Total Gross Revenue (22
Slide 23: City Clubs Q4 2021
City Clubs Q4 2021 City Clubs Q4 Adjusted EBITDA was $25 million, up 213% YoY and up 257% QoQ Adjusted EBITDA (HK$’m) $25 $8 $7 2020 Q4 2021 Q3 2021 Q4 February 2022 23
Slide 24: Construction Materials Q4 2021
Construction Materials Q4 2021 Construction Materials Q4 Adjusted EBITDA decreased 10% YoY and increased 23% QoQ to $293 million Puer Cement Plant Adjusted EBITDA (HK$’m) $326 $293 $238 2020 Q4 2021 Q3 2021 Q4 February 2022 24
Slide 25: Selected Major Awards for 2021
Selected Major Awards for 2021 Award Presenter 2021 Asian Gaming Power 50 List No.1 - Mr. Francis Lui Inside Asian Gaming Casino Operator of the Year International Gaming Awards 2021 Charitable Community Award GEG SocietyNext Foundation, UNESCO Hong Kong Association Glocal Peace Centre and Rotary ES
Slide 26: Selected Major Awards for 2021
Selected Major Awards for 2021 Award Presenter StarWorld Top Class Comfort Hotel Michelin Guide Hong Kong and Macau 2021 Macau Broadway Hotel Group B (Excellence Award) Macau Energy Saving Activity 2020 MacauTM Hong Kong Green Organization Certification “Wastewi$e” Certificate Environmental Campaign
Slide 27: GEG Development Update
GEG Development Update Galaxy Macau™ and StarWorld Macau • We continue to make ongoing progressive enhancements to our resorts to ensure that they remain competitive and appealing to our guests Cotai - The Next Chapter • GEG is uniquely positioned for long term growth. Phase 3 is effectively complet
Slide 28: GEG Development Update
GEG Development Update Cotai - The Next Chapter (continued) • We continue to proceed with the construction of Cotai Phase 4, our next generation integrated resort, which will complete our ecosystem in Cotai. As you can see, we remain highly confident about the future of Macau where Cotai Phases 3 an
Slide 29: Summary: Positioned for Growth
Summary Positioned for Growth Corporate – Well Capitalized with Strong Balance Sheet • FY2021 Net Revenue of $19.7 billion, up 53% YoY and Adjusted EBITDA of $3.5 billion, versus $(1.0) billion in 2020 • Q4 2021 Adjusted EBITDA of $1.0 billion, up 3% YoY and 107% QoQ • FY2021 NPAS of $1.3 billion, v
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: Q4 and Annual Results 2021
Q4 and Annual Results 2021 23 February, 2022
Galaxy Entertainment Group — Q4 2021 Earnings Presentation on 6ix