Banyan Tree Holdings Limited · SGX:B58

Banyan Tree — FY2019 Earnings Presentation

27 slides from Banyan Tree's earnings presentation, Mar 31, 2020

  1. Slide 1: FY19 Results Briefing

    FY19 RESULTS BRIEFING 1 HOW BANYANTREE ANGSANA —CASSIA. DAWA,

  2. Slide 2: Disclaimer

    1. AGENDA HEADER Disclaimer This document is provided to you for information only and should not be relied on or used as a basis for making any specific investment, business or commercial decision. No representation or warranty, expressed or implied, is made as to, and no reliance should be placed o

  3. Slide 3: Agenda

    1 OV E RV I E W KEY SEGMENTS PERFORMANCE 2 REVIEW A G E N DA 3 FUTURE PLANS Presentation by Eddy See, President and Group MD 3

  4. Slide 4: Overview

    OVERVIEW @ % BANYANTREE ANGSANA —CASSIA. DAWA,

  5. Slide 5: Group Financial Highlights

    1. OVERVIEW Group Financial Highlights FY18 (S$’M) FY19 (S$’M) Change1 (%) Revenue 329.0 347.0 5% Operating Profit (a) 83.1 56.2 32% One-off Gains on Disposal (b) (37.6) - Allowance on Impairment losses 2 (c) - 8.9 Core Operating Profit [(a) + (b) + (c)] 45.5 65.1 43% Cash Profit3 44.1 22.5 49% Net

  6. Slide 6: Key Figures

    1. OVERVIEW Key Figures1 51% S$0.80 S$131m discount NAV2 Per Share Share Price3 / NAV Cash and Cash Equivalents 57% S$0.8b S$56m 15x Net Gearing Ratio4 Enterprise Value5 EBITDA EV/EBITDA Note: 1. Financial figures as at 31-Dec-19. 2. NAV denotes Net Asset Value. 3. Share price based on closing share

  7. Slide 7: Key Segments Business Review

    KEY SEGMENTS BUSINESS REVIEW 7

  8. Slide 8: Hotel & Fee-Based Business

    HOTEL & FEE- BASED BUSINESS tH 3 @% BANYANTREE ANGSANA —CASSIA. DAWA,

  9. Slide 9: Hotel Investments – Financial Performance

    2. HOTEL & FEE-BASED BUSINESS Hotel Investments – Financial Performance Operating Profit Owned Hotels1 Highlights S$'M  Absence of Seychelles $36.0 contribution (S$4.9m). Total  Impairment loss on $30.0 Morocco’s assets S$23.2m  13.1m (S$5.3m). $24.0 Net   profit (Thailand) due $18.0 S$10.1m to

  10. Slide 10: Fee-Based Business – Financial Performance

    2. HOTEL & FEE-BASED BUSINESS Fee-Based Business – Financial Performance Operating Profit Highlights S$'M   fees income. $36.0 Total  0.4m Total Partially cushioned by: $30.0 S$28.7m S$28.3m   staff costs.   S&M expenses. $24.0 $18.0 24.2 23.3 $12.0 $6.0 2.6 2.6 $0.0 1.9 2.4 FY18 FY 1 9 Desig

  11. Slide 11: Hotel Operating Performance – Ave Occupancy (%)

    2. HOTEL & FEE-BASED BUSINESS Hotel Operating Performance – Ave Occupancy (%) All Hotels (Same Store1) Highlights %   2% points mainly due 70% to resorts in Thailand, 67% Seychelles and Indonesia, partially cushioned by higher 65% occupancy in Maldives. FY18: 60% 60% 60% 60% 60% 58% 55% 59% 55% FY

  12. Slide 12: Hotel Operating Performance – Ave Room Rates (S$)

    2. HOTEL & FEE-BASED BUSINESS Hotel Operating Performance – Ave Room Rates (S$) All Hotels (Same Store1) Highlights S$  Consistent with last 450 year. 400 384 FY18: 330 364 350 317 311 333 FY19: 329 304 300 307 309 250 200 1Q 2Q 3Q 4Q 2019 2018 1. Same Store Concept excludes all new resorts opened

  13. Slide 13: Hotel Operating Performance – RevPAR (S$)

    2. HOTEL & FEE-BASED BUSINESS Hotel Operating Performance – RevPAR (S$) All Hotels (Same Store1) Highlights S$   2% 300  Due to lower occupancy. 258 250 FY18: 197 219 200 185 199 176 FY19: 193 181 177 167 150 100 1Q 2Q 3Q 4Q 2019 2018 1. Same Store Concept excludes all new resorts opened in the p

  14. Slide 14: Room Revenue By Country Of Residence (COR)

    2. HOTEL & FEE-BASED BUSINESS Room Revenue By Country Of Residence (COR)* FY18 FY19 Highlights Asia  China guests make up (Owned: Hotel 22% of owned hotels. Investments)  China guests make up majority (90%) of China managed hotels.  Contribution to Group EBITDA from China guests in managed hotels

  15. Slide 15: Room Revenue By Country Of Residence (COR)

    2. HOTEL & FEE-BASED BUSINESS Room Revenue By Country Of Residence (COR)* FY18 FY19 Highlights Asia  China guests make up (Managed: 15% of Asia managed Fee-based) hotels.  Contribution of fees to Group EBITDA from China guests on Asia managed hotels is approx. 1%.  China guests make up less than

  16. Slide 16: Hotel Business – Forward Bookings

    2. HOTEL & FEE-BASED BUSINESS Hotel Business – Forward Bookings All Hotels Highlights On-The-Book (“OTB”) Room Revenue US$'M  Forward bookings overall (15%) impacted by Covid-19 ( $60 15%).  Owned hotels forward $50 bookings only  6%.  China managed hotels  $40 by 47%.  No impact to our resor

  17. Slide 17: Covid-19 Pick-up & Cancellation Trend for Owned Hotels

    Covid-19 2. HOTEL & FEE-BASED BUSINESS Pick-up & Cancellation Trend for Owned Hotels Thailand Hotels Q1’ 2020 Daily Cancellation vs. Daily Pick-up Highlights Revenue (S$’000)  Cancellation for Thailand hotels peaked around end Jan 2020 whereas Maldives peaked in early Feb 2020.  Cancellations for

  18. Slide 18: Covid-19 COR Top Declining & Growth for Owned Hotels

    Covid-19 2. HOTEL & FEE-BASED BUSINESS COR Top 5 Declining & Growth for Owned Hotels From 23 January to 30 June (SGD ‘000) Highlights Thailand • Sharp decline lead mainly Thailand by China and Japan guests. • Significant growth in Europe guests, especially from Russia. Maldives • Similarly, China gu

  19. Slide 19: Hotel Business – Projected Growth

    2. HOTEL & FEE-BASED BUSINESS Hotel Business – Projected Growth Steady Pipeline Growth Number of keys1 Highlights No. of Keys 17,000  CAGR of 24% based on CAGR 2019 - 2023 = 24% 15,789 contracts completion 16,000 Past Current Future 1,026 dates. 15,000 (2009) (2019) (2023) 13,529 14,000 Owned Hotel

  20. Slide 20: Residences and Extended Stay

    RESIDENCES AND EXTENDED S T AY 20

  21. Slide 21: Residences and Extended Stay – Financial Performance

    2. RESIDENCES AND E X T E N D E D S TAY Residences and Extended Stay – Financial Performance Operating Profit1 Highlights S$'M   revenue recognition from Cassia Phuket $35.0 (Phase 3) and Banyan Tree Phuket Pool Villas. $30.0  226 units (FY19) vs. 128 units (FY18). 28.8 $25.0 $23.3m $20.0 $15.0 $

  22. Slide 22: Residences and Extended Stay – Financial Performance

    2. RESIDENCES AND E X T E N D E D S TAY Residences and Extended Stay – Financial Performance Sales Progress Highlights Unit Unrecognised Revenue S$'M  In FY19, 337 units sold : S$178.2m as at 31.12.2019 (S$116m) vs. 211 units 400 $300 Recognised in Year S$'M (S$126m) in FY18. 2020 97.3 350 2021 42.

  23. Slide 23: Future Plans

    FUTURE PLANS we % @% BANYANTREE ANGSANA —CASSIA. DAWA,

  24. Slide 24: Future Plans

    3. FUTURE PLANS Future Plans  Will continue to leverage our key competences for growth by assets/ownership rebalancing when opportunities arise.  Maintain hotel investments in Asia Pacific, our stronghold.  Continue to unlock value from our landbanks through branded hotel-residences model.  Stra

  25. Slide 25: Future Plans – New Hotel Contracts Signed in 2019

    3. FUTURE PLANS Future Plans – New Hotel Contracts Signed in 2019 Brand HMA MOU Banyan Tree 11 4 Angsana 4 4 Cassia 1 3 Dhawa 9 4 Folio 1 - Others 1 - Total 27* 15 * Include 10 Accor / Vanke leads. 25

  26. Slide 26: Future Plans – 46 Hotels to be opened

    3. FUTURE PLANS Future Plans – 46 Hotels to be opened *White label 26

  27. Slide 27: Future Plans – Residences and Extended Stay Development

    3. FUTURE PLANS Future Plans – Residences and Extended Stay Development Existing Land Bank Land size (Hectares) 124 Gross Development Value (S$’Billion) 4.6 2020: Projects activated for development No. of Projects 3 Land size (Hectares) 9 Gross Development Value (S$’Billion) 0.6 Percentage of land b

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