Galaxy Entertainment Group Limited · HKEX:27
Galaxy Entertainment — FY2017 Earnings Presentation
30 slides from Galaxy Entertainment's earnings presentation, Feb 28, 2018
Slide 1: Q4 and Annual Results for the period end December 31, 2017
Q4 and Annual Results for the period end December 31, 2017 28 February, 2018
Slide 2: Executive Summary: GEG Group
Executive Summary GEG: Record Full Year and Q4 Adjusted EBITDA Driven by Record Mass, Improving VIP and Operating Efficiency Q4 2017 • Q4 2017 Group revenue increased by 25% YoY and 13% QoQ to $18 billion • Q4 2017 Group Adjusted EBITDA increased by 40% YoY and increased by 18% QoQ to $4.2 billion •
Slide 3: Executive Summary: Galaxy Macau
Executive Summary Galaxy Macau™: Record Full Year and Q4 Adjusted EBITDA Q4 2017 • Q4 2017 revenue increased by 31% YoY and 17% QoQ to $13.2 billion • Q4 2017 Adjusted EBITDA increased by 42% YoY and increased by 24% QoQ to $3.4 billion • Played lucky in Q4 2017 which increased Adjusted EBITDA by ap
Slide 4: Executive Summary: StarWorld Macau
Executive Summary StarWorld Macau: Strong Performance Despite Bad Luck Q4 2017 • Q4 2017 revenue increased by 7% YoY and declined 3% QoQ to $3.7 billion • Q4 2017 Adjusted EBITDA increased by 18% YoY and decreased by 6% QoQ to $751 million • Played unlucky in Q4 2017 which decreased Adjusted EBITDA
Slide 5: Executive Summary: Broadway Macau
Executive Summary Broadway Macau™: A Unique Family Friendly Resort, Strongly Supported by Macau SMEs Q4 2017 • Q4 2017 revenue declined by 8% YoY and increased 40% QoQ to $147 million • Q4 2017 Adjusted EBITDA was $7 million Vs $14 million in Q4 2016 • Played lucky in Q4 2017 which increased Adjuste
Slide 6: Executive Summary: Balance Sheet and Special Dividends
Executive Summary Balance Sheet: Remains Well Capitalized and Liquid with Virtually No Core Debt • Cash and liquid investments was $41.4 billion and net cash was $31.7 billion as at 31 Dec 2017 • Debt of $9.7 billion as of 31 Dec 2017 primary reflects ongoing yield management initiative with virtual
Slide 7: Executive Summary: Development Update
Executive Summary Development Update : Robust Growth Development Pipeline including Macau, Hengqin, Japan and the Philippines • Cotai Phases 3 & 4 – Continue to move forward with Phases 3 & 4, with a strong focus on non-gaming, primarily targeting MICE, entertainment, family facilities and also incl
Slide 8: Annual Results 2017
Annual Results 2017 February 2018 8
Slide 9: GEG Revenue FY2017
GEG Revenue FY2017 Fiscal 2017 Revenue increased 18% YoY to $62.5 billion GEG Revenue (HK$’m) $62,450 $52,826 Revenue’ YoY GEG Total +18% $44,578 Galaxy Macau™ +17% $38,075 StarWorld Macau +20% Broadway Macau™ (24)% $14,184 $11,827 $514 City Clubs 0% $676 $107 $107 $3,067 $2,141 Construction Materia
Slide 10: GEG Adjusted EBITDA FY2017
GEG Adjusted EBITDA FY2017 Group Adjusted EBITDA grew 37% YoY to a record $14.1 billion GEG Adjusted EBITDA (HK$’m) $14,147 $10,348 EBITDA’ YOY GEG Total +37% $11,130 Galaxy Macau™ +31% $8,508 StarWorld Macau +38% Broadway Macau™ (67)% $2,966 $2,150 0% $10 City Clubs $30 $107 $434 $107 $744 $(881) $
Slide 11: GEG FY2017 NPAS
GEG FY2017 NPAS 2017 NPAS grew 67% to a record $10.5 billion and increased 61% on an adjusted basis to a record $11.0 billion after non- recurring charges (in HK$'m) FY2016 FY2017 YoY% Revenue $ 52,826 $ 62,450 18% Adjusted EBITDA $ 10,348 $ 14,147 37% Net Profit attributable to shareholders (NPAS)
Slide 12: GEG Special Dividends
GEG Special Dividends Today, GEG announced another special dividend of $0.41 per share to be paid on or about 27 April 2018 • The Group paid two special dividends of $0.26 per share and $0.33 per share, on 28 April 2017 and 27 October 2017, respectively • Today, the Board is pleased to announce anot
Slide 13: Cash and Debt Update
Cash and Debt Update GEG continues to remain well capitalized with Cash and Liquid Investments of $41.4 billion and net cash position of $31.7 billion as at 31 December 2017 Debt of $9.7 billion as at 31 December 2017 primary reflects ongoing treasury yield management initiative with virtually no co
Slide 14: Q4 2017 Results
Q4 2017 Results February 2018 14
Slide 15: GEG Revenue Q4 2017
GEG Revenue Q4 2017 Group revenue in Q4 2017 grew 25% YoY and 13% QoQ to $18 billion YoY QoQ GEG Revenue (HK$’m) $18,001 GEG Total +25% +13% $15,905 $14,359 Galaxy Macau™ +31% +17% $13,225 StarWorld Macau +7% (3)% $11,281 $10,118 Broadway Macau™ (8)% +40% $3,679 $3,433 $3,810 $159 $147 City Clubs +1
Slide 16: GEG Adjusted EBITDA Q4 2017
GEG Adjusted EBITDA Q4 2017 Group Adjusted EBITDA in Q4 2017 grew 40% YoY and 18% QoQ to a record $4.2 billion GEG Adjusted EBITDA (HK$’m) YoY QoQ $4,159 $3,522 GEG Total +40% +18% $2,961 Galaxy Macau™ +42% +24% $3,357 $2,710 $2,369 StarWorld Macau +18% (6)% Broadway Macau™ (50)% NMF $799 $751 $637
Slide 17: Galaxy Macau
Galaxy Macau February 2018 17
Slide 18: Galaxy Macau Q4 2017
Galaxy Macau Q4 2017 Galaxy Macau™ Adjusted EBITDA grew 42% YoY to and 24% QoQ to a record $3.4 billion Revenue YoY QoQ Total revenue of $13.2 billion up 31% YoY and 17% QoQ Total +31% +17% • VIP revenue grew 44% YoY and 24% QoQ to $7.3 billion VIP Gaming # +44% +24% Mass Gaming +21% +12% • Mass re
Slide 19: StarWorld Macau
StarWorld Macau February 2018 19
Slide 20: StarWorld Macau Q4 2017
StarWorld Macau Q4 2017 StarWorld Macau Q4 2017 Adjusted EBITDA grew 18% YoY and down 6% QoQ to $751 million Revenue YoY QoQ Total revenue of $3.7 billion up 7% YoY and down 3% QoQ Total +7% (3)% VIP Gaming +1% (8)% • VIP win increased 1% YoY and down 8% QoQ to $2.1 billion +17% +3% Mass Gaming • Ma
Slide 21: Broadway Macau
Broadway Macau™ February 2018 21
Slide 22: Broadway Macau Q4 2017
Broadway Macau™ Q4 2017 Broadway Macau™ Q4 2017 Adjusted EBITDA of $7 million, versus $14 million in Q4 2016 Total revenue of $147 million, versus $159 million in prior year Revenue YoY QoQ and $105 million in Q3 2017 Total (8)% +40% (25)% +56% • Mass win of $75 million decreased 25% YoY and grew 56
Slide 23: City Clubs Q4 2017
City Clubs Q4 2017 City Clubs Q4 2017 Adjusted EBITDA was flat YoY at $29 million City Clubs Adjusted EBITDA (HK$’m) $29 $29 $25 2016 Q4 2017 Q3 2017 Q4 February 2018 23
Slide 24: Construction Materials Q4 2017
Construction Materials Q4 2017 CMD Q4 2017 Adjusted EBITDA grew 88% YoY to $235 million Construction Materials Adjusted EBITDA (HK$’m) $235 $188 $125 2016 Q4 2017 Q3 2017 Q4 February 2018 24
Slide 25: Selected 2017 Awards
Selected 2017 Awards Award Presenter Best Gaming Operator Asia Gaming Award 2017 GEG Best IR Company – Large Cap Hong Kong Investor Relations Association Best IR Presentation Collaterals – Large Cap Integrated Resort of the Year International Gaming Awards Best Integrated Resort Asia Gaming Awards 2
Slide 26: Selected 2017 Awards
Selected 2017 Awards Award Presenter Ranked as "Top Class Comfort" Hotel Michelin 2-Stars Restaurant – Feng Wei Ju The Michelin Guide Hong Kong Macau 2018 Michelin Plate – Temptations StarWorld Macau Best Gaming Property Asia Gaming Awards 2017 Top 10 Glamourous Hotels of China The 12th China Hotel
Slide 27: GEG Development Update
GEG Development Update Cotai - The Next Chapter • GEG is uniquely positioned for long term growth • We continue to move forward with Phases 3 and 4, and we look forward to formally announcing our development plans in the future Hengqin • We continue to make progress with our concept plan for our Hen
Slide 28: Summary: Positioned for Growth
Summary Positioned for Growth Corporate • 2017FY Revenue of $62.5 billion, up 18% YoY and a record Adjusted EBITDA of $14.1 billion, up 37% YoY • Q4 2017 Adjusted EBITDA of a record $4.2 billion, up 40% YoY • 2017FY NPAS of a record $10.5 billion, up 67% YoY • GEG commenced • Paid two special divide
Slide 29: 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 30: Q4 and Annual Results for the period end December 31, 2017
Q4 and Annual Results for the period end December 31, 2017 28 February, 2018
Galaxy Entertainment Group — FY2017 Earnings Presentation on 6ix