Galaxy Entertainment Group Limited · HKEX:27
Galaxy Entertainment — Q2 2021 Earnings Presentation
33 slides from Galaxy Entertainment's earnings presentation, Aug 12, 2021
Slide 1: Q2 & Interim Results 2021
Q2 & Interim Results 2021 12 August, 2021
Slide 2: Letter from the Chairman of GEG
Letter from the Chairman of GEG I appreciate the opportunity to update you on GEG’s most recent activities and financial results for the second quarter and first half of 2021. Macau continues to gradually recover and effectively navigate through the pandemic. The Macau market experienced its fourth
Slide 3: Letter from the Chairman of GEG
Letter from the Chairman of GEG Moving on to our development update beginning with Cotai Phases 3 and 4 where we continue to invest in the future of Macau. We were pleased to announce in March 2021 the introduction of the legendary Raffles at Galaxy Macau which will feature an approximate 450 all-su
Slide 4: Executive Summary
Executive Summary GEG: Gradual Pandemic Recovery Continues Supported by Continued Effective Cost Control Q2 2021 • Q2 Group Net Revenue of $5.6 billion, Vs $1.2 billion in Q2 2020 and $5.1 billion in Q1 2021 • Q2 Group Adjusted EBITDA of $1.1 billion, Vs $(1.4) billion in Q2 2020 and $859 million in
Slide 5: Executive Summary: Galaxy Macau
Executive Summary Galaxy Macau™: Gradual Pandemic Recovery Continues Q2 2021 • Q2 Net Revenue of $3.8 billion, Vs $311 million in Q2 2020 and $3.4 billion in Q1 2021 • Q2 Adjusted EBITDA of $924 million, Vs $(1.2) billion in Q2 2020 and $764 million in Q1 2021 • Normalized Q2 Adjusted EBITDA was $83
Slide 6: Executive Summary: StarWorld Macau
Executive Summary StarWorld Macau: Gradual Pandemic Recovery Continues Q2 2021 • Q2 Net Revenue of $932 million, Vs $81 million in Q2 2020 and $1.0 billion in Q1 2021 • Q2 Adjusted EBITDA of $135 million, Vs $(306) million in Q2 2020 and $170 million in Q1 2021 • Normalized Q2 Adjusted EBITDA was $1
Slide 7: Executive Summary: Broadway Macau
Executive Summary Broadway Macau™: A Unique Family Friendly Resort, Strongly Supported By Macau SMEs Q2 2021 • Q2 Net Revenue of $14 million Vs $12 million in Q2 2020 and $15 million in Q1 2021 • Q2 Adjusted EBITDA of $(20) million Vs $(52) million in Q2 2020 and $(23) million in Q1 2021 • There was
Slide 8: Executive Summary: Balance Sheet
Executive Summary Balance Sheet: Maintain a Healthy and Liquid Balance Sheet • Cash and liquid investments totaled $43.0 billion and net cash was $31.6 billion as at 30 June 2021 • Debt of $11.4 billion as at 30 June 2021 primarily associated with treasury yield management program GEG Dividend • Giv
Slide 9: Executive Summary: Development Update
Executive Summary Development Update: Making Progress on Cotai Phases 3 & 4 • Continue to make ongoing progressive enhancements to our resorts to ensure that they remain competitive and appealing to our guests • Cotai Phases 3 & 4 – Continue with development works for Phases 3 & 4, with a strong foc
Slide 10: Interim Results 2021
Interim Results 2021 August 2021 10
Slide 11: GEG Revenue Summary 1H 2021
GEG Revenue Summary 1H 2021 Group Net Revenue in the first half of 2021 was up 71% YoY to $10.7 billion GEG Gross Revenue (HK$’m) GEG Net Revenue (HK$’m) $12,296 $10,661 $7,616 $7,711 GM, $8,420 $6,653 GM, $6,223 $7,226 GM, GM, $4,942 $4,681 GM, GM, $3,944 $3,835 BW, SW, BW, BW, SW, BW, BW, BW, SW,
Slide 12: GEG Revenue Summary 1H 2021
GEG Revenue Summary 1H 2021 Group Net Revenue in the first half of 2021 was up 71% YoY to $10.7 billion Gross Net Gross Net YoY Revenue Revenue HoH Revenue Revenue GEG Total +61% +71% GEG Total +59% +60% Galaxy Macau™ +70% +88% Galaxy Macau™ +80% +83% StarWorld +75% +80% StarWorld +62% +69% Broadway
Slide 13: GEG Adjusted EBITDA Summary 1H 2021
GEG Adjusted EBITDA Summary 1H 2021 Group Adjusted EBITDA was $2.0 billion in the first half of 2021, Vs $(1.1) billion in 1H 2020 • Normalized 2021 1H Adjusted EBITDA was $1.7 billion after adjusting for good luck of $243 million, Vs $(1.2) billion in 2020 1H and $0.1 billion in 2020 2H GEG Adjuste
Slide 14: GEG 1H 2021 NPAS
GEG 1H 2021 NPAS 1H 2021 Net Profit Attributable to Shareholders of $0.9 billion, including $0.1 billion of non-recurring items, Vs loss of $2.9 billion in 1H 2020 (in HK$'m) 1H20 1H21 YoY Net Revenue $ 6,223 $ 10,661 71% Adjusted EBITDA $ (1,087) $ 1,991 283% Net Profit / (Loss) attributable to sha
Slide 15: Q2 2021 Results
Q2 2021 Results August 2021 15
Slide 16: GEG Revenue Q2 2021
GEG Revenue Q2 2021 Q2 Group Net Revenue of $5.6 billion, Vs $1.2 billion in Q2 2020 and $5.1 billion in Q1 2021 GEG Net Revenue (HK$’m) $5,565 YoY QoQ $5,096 GEG Total +383% +9% GM, $3,809 Galaxy Macau™ +1125% +11% GM, $3,417 StarWorld Macau +1051% (8)% BW, BW, $12 BW, $14 $1,153 Broadway Macau™ +1
Slide 17: GEG Adjusted EBITDA Q2 2021
GEG Adjusted EBITDA Q2 2021 Q2 Group Adjusted EBITDA of $1.1 billion, Vs $(1.4) billion in Q2 2020 and $859 million in Q1 2021 • Normalized Q2 Adjusted EBITDA was $1.1 billion after adjusting for good luck of $74 million, Vs $(1.4) billion in Q2 2020 and $690 million in Q1 2021 GEG Adjusted EBITDA (
Slide 18: Galaxy Macau
TA Galaxy Galaxy Macau™ - HUE GEG August 2021 18
Slide 19: Galaxy Macau Q2 2021
Galaxy Macau Q2 2021 Galaxy Macau™ Q2 Adjusted EBITDA of $924 million, Vs $(1.2) billion in Q2 2020 and $764 million in Q1 2021 Galaxy Macau YoY QoQ Q2 Net Revenue of $3.8 billion, Vs $311 million in Q2 2020 and Total Gross Revenue +913% +12% $3.4 billion in Q1 2021 +1125% +11% Total Net Revenue •
Slide 20: StarWorld Macau
StarWorld Macau August 2021 20
Slide 21: StarWorld Macau Q2 2021
StarWorld Macau Q2 2021 StarWorld Macau Q2 Adjusted EBITDA of $135 million, Vs $(306) million in Q2 2020 and $170 million in Q1 2021 StarWorld Macau YoY QoQ Net Revenue of $932 million, Vs $81 million in Q2 2020 and $1.0 Total Gross Revenue +917% (10)% billion in Q1 2021 Total Net Revenue +1051% (8)
Slide 22: Broadway Macau
Broadway Macau™ August 2021 22
Slide 23: Broadway Macau Q2 2021
Broadway Macau™ Q2 2021 Broadway Macau™ Adjusted EBITDA of $(20) million Vs $(52) million in Q2 2020 and $(23) million in Q1 2021 Net Revenue of $14 million Vs $12 million in Q2 2020 and Broadway Macau™ YoY QoQ $15 million in Q1 2021 Total Gross Revenue +25% 0% • Hotel was suspended in Q2 2021 Total
Slide 24: City Clubs Q2 2021
City Clubs Q2 2021 City Clubs Q2 2021 Adjusted EBITDA was $20 million, Vs $2 million in Q2 2020 and $10 million in Q1 2021 Adjusted EBITDA (HK$’m) $20 $10 $2 2020 Q2 2021 Q1 2021 Q2 August 2021 24
Slide 25: Construction Materials Q2 2021
Construction Materials Q2 2021 Construction Materials Q2 2021 Adjusted EBITDA decreased 26% YoY and increased 85% QoQ to $289 million Puer Cement Plant Adjusted EBITDA (HK$’m) $390 $289 $156 2020 Q2 2021 Q1 2021 Q2 August 2021 25
Slide 26: Selected Awards in 1H 2021
Selected Awards in 1H 2021 Award Presenter SocietyNext Foundation, UNESCO Hong Kong GEG ESG Recognitions Ceremony 2021 - ESG Care Label 2021-2022 Association Glocal Peace Centre, and Rotary Action Group for Peace Hong Kong & Macao Chapter Environmental Protection Bureau of Macau SAR 2020 Macao Green
Slide 27: Selected Awards in 1H 2021
Selected Awards in 1H 2021 Award Presenter Top Class Comfort Hotel Michelin Guide Hong Kong and Macau 2021 Michelin Two-star Restaurant - Feng Wei Ju StarWorld Macau SCMP 100 Top Tables 2021 - Feng Wei Ju South China Morning Post One-diamond Restaurant Black Pearl Restaurant Guide 2021 Quality Touri
Slide 28: Cash and Debt Update
Cash and Debt Update Balance Sheet: Maintain a Healthy and Liquid Balance Sheet • As at 30 June 2021, cash and liquid investments were $43.0 billion and net cash was $31.6 billion • As at 30 June 2021, debt was $11.4 billion, including $10.9 billion associated with our treasury yield enhancement pro
Slide 29: GEG Development Update
GEG Development Update Cotai - The Next Chapter • We are proceeding with the development of Phases 3 & 4 and continue to review and refine plans to ensure a world-class optimal development. We see the premium market evolving with this segment preferring higher quality and more spacious The latest ro
Slide 30: 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 Greater Bay Area / Hengqin • Regarding our development plan in Hengqin, we are awaiting updates from the g
Slide 31: Summary
Summary Positioned for Growth Corporate – Gradual Pandemic Recovery Continues Supported by Continued Effective Cost Control • 1H Group Adjusted EBITDA of $2.0 billion Vs $(1.1) billion in 1H 2020 • Q2 Group Adjusted EBITDA of $1.1 billion, Vs $(1.4) billion in Q2 2020 and $859 million in Q1 2021 • G
Slide 32: 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 33: Q2 & Interim Results 2021
Q2 & Interim Results 2021 12 August, 2021
Galaxy Entertainment Group — Q2 2021 Earnings Presentation on 6ix