Genting Bhd. · MYX:GENTING
Genting Bhd — Shareholder Meeting (June 2023)
59 slides from Genting Bhd's shareholder meeting presentation, Jun 1, 2023
Slide 1: 55th Annual General Meeting
55th ANNUAL GENERAL MEETING 1st June 2023 Presentation to Shareholders by Ms. Wong Yee Fun Chief Financial Officer Copyright © 2023 Genting Berhad 196801000315 (7916-A) (7916-A).. All Rights Reserved. Reserved. 55th AGM 1 June 2023 # 1
Slide 2: Agenda
AGENDA 1. Group Financials 2022 2. Business Review 2022 – Genting Malaysia – Genting Singapore – Resorts World Las Vegas – Genting Plantations – Genting Energy 3. Sustainability 4. Prospects 5. Pre-AGM Questions from MSWG and Shareholders Copyright © 2023 Genting Berhad 196801000315 (7916-A). All Ri
Slide 3: Group Financials 2022
55th Annual General Meeting Group Financials 2022 Copyright © 2023 Genting Berhad 196801000315 (7916-A). All Rights Reserved. 55th AGM 1 June 2023 # 3
Slide 4: Group Financials 2022
Group Financials 2022 Strong performance in FY2022: • Higher Total Revenue, EBITDA and Net Profit • Robust balance sheet TOTAL REVENUE TOTAL EBITDA 1 TOTAL NET PROFIT RM7.3 billion RM44.5 million RM22.4 billion +65% YoY +82% YoY >100% YoY 2021: RM4.0 billion 2021: (RM1,413.1) million 2021: RM13.5 bi
Slide 5: Group Financials - 2022
Group Financials - 2022 • Leisure & Hospitality - largest contributor and key growth driver REVENUE EBITDA Financial year 2022 2021 2022 2021 Segmental breakdown: 1. Leisure & Hospitality 77.6% 64.2% 81.4% 59.1% a) Malaysia 23.3% 11.1% 28.8% 1.6% b) Singapore 24.6% 24.3% 35.0% 36.0% c) UK & Egypt 6.
Slide 6: Group Financials - Dividends
Group Financials - Dividends TOTAL DIVIDEND PER SHARE DIVIDEND PAYOUT (sen) (%) Started COVID19 Ended COVID19 Ended Started 30 Jan 2020 pandemic* 5 May 2023 pandemic* 5 May 2023 30 Jan 2020 21.5 22.0 213.0% 16.0 15.0 11.0 146.0% 84.0% 84.8% 82% 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Copyr
Slide 7: Group Financials – Recovery from the pandemic
Group Financials – Recovery from the pandemic • Improved financial performance since 2020 (start of the COVID-19 pandemic), with the recovery driven by the Leisure & Hospitality division • Ongoing proactive measures to strengthen our businesses for continued growth Revenue EBITDA (RM billion) Net Pr
Slide 8: Group Financials – Strong balance sheet
Group Financials – Strong balance sheet • Strong and resilient balance sheet throughout the years • Consistently maintained an optimal gearing ratio Total Assets Shareholders' equity Total Debt1 (RM billion) (RM billion) (RM billion) 96.1 102.0 99.6 102.4 102.5 57.4 59.3 54.5 53.2 52.9 33.1 36.8 40.
Slide 9: Group Financials – Capital Commitments
Group Financials – Capital Commitments 31 Dec 2022 31 Dec 2021 YOY YOY (RM million) (RM million) (RM million) (%) Genting Malaysia - Malaysia 2,042 2,077 (35) (2%) Ongoing GITP* project - UK 152 59 +93 >+100% - US & Bahamas 693 911 (218) (24%) Genting Singapore 12,134 11,430 +704 +6% FOREX effect –
Slide 10: Business Review 2022
55th Annual General Meeting Business Review 2022 54th rdAGM 3 June 20222020 Copyright © 2023 2021 Genting Berhad 196801000315 196801000315 (7916-A). (7916-A). All Rights All Reserved. Rights Reserved. 52 nd 55th AGM 53AGM 1 22 AGM June 2 2023 June 2021 # 10 # 10
Slide 11: Leisure & Hospitality
Leisure & Hospitality BUSINESS REVIEW Resorts World Genting, Malaysia GENTING MALAYSIA GROUP In RM million FY2022 FY2021 % Change Driven by Revenue 8,603 4,157 ↑>100% robust EBITDA1 recovery of 2,117 727 ↑>100% (operational earnings) Genting Resorts World Catskills, USA Resorts World New York City,
Slide 12: Leisure & Hospitality: Malaysia
Leisure & Hospitality BUSINESS REVIEW MALAYSIA – Financials In RM million FY2022 FY2021 Change One of Asia’s leading integrated resort destinations with ~10,500 rooms* Revenue 5,206 1,507 ↑>100% Adjusted EBITDA 2,106 63 ↑>100% KEY STATISTICS – FY2022 Adjusted EBITDA margin 40% 4% ❖ Demand recovery d
Slide 13: Resorts World Genting
Leisure & Hospitality BUSINESS REVIEW RESORTS WORLD GENTING As pandemic concerns recede, Resorts World Genting was back into action with its signature concerts, festivals and other iconic events, ramping up after a two-year hiatus. ❖ Soft opening of Genting SkyWorlds on 8 February 2022 ❖ Return of w
Slide 14: Leisure & Hospitality: Genting Singapore
Leisure & Hospitality BUSINESS REVIEW GENTING SINGAPORE In RM million FY2022 FY2021 Change Revenue 5,502 3,285 ↑+67% Adjusted EBITDA 2,553 1,449 ↑+76% Adjusted EBITDA margin 46% 44% Resorts World Sentosa (“RWS”) ❖ Emerging stronger. Attractions in 2022/23: ▪ S.E.A. Aquarium – ‘World Oceans Day’ even
Slide 15: RWS 2.0 Strategy
Leisure & Hospitality BUSINESS REVIEW RWS 2.0 STRATEGY – to be carried out in 2 stages to enhance all its product offerings (RWS 1.5 and RWS 2.0) SINGAPORE OCEANARIUM PREPARING FOR FULL RECOVERY In support of Singapore’s latest Tourism Strategy MINION LAND • Broke ground in May 2022 • Soft opening e
Slide 16: US & Bahamas Financials
Leisure & Hospitality BUSINESS REVIEW US & BAHAMAS (include RWLV) – Financials In RM million FY2022 FY2021 Change Revenue 5,154 2,824 ↑+ 82% Adjusted EBITDA 983 631 ↑+56% Adjusted EBITDA margin 19% 22% ❖ Higher revenue and earnings - driven by full year operations of Resorts World Las Vegas and Hyat
Slide 17: Resorts World Las Vegas
Leisure & Hospitality BUSINESS REVIEW RESORTS WORLD LAS VEGAS Newest integrated resort in Las Vegas Strip, with one of the largest exterior LED building displays in the United States ❖ First full fiscal year of 2022, the resort recorded: ▪ Revenue of USD794 million driven by the return of convention
Slide 18: Resorts World Las Vegas Property Enhancements
Leisure & Hospitality BUSINESS REVIEW 2022 RESORTS WORLD LAS VEGAS PROPERTY ENHANCEMENTS Completed ❖ New District Entry – created new entry at north end of the Retail District to capture foot traffic and Fontainebleau traffic when it opens New District Entry ❖ Randy’s Donuts @ SOBO - partnership/reb
Slide 19: Resorts World New York City and Empire Resorts
Leisure & Hospitality BUSINESS REVIEW RESORTS WORLD NEW YORK CITY EMPIRE RESORTS, INC New York City’s premier integrated resort destination ❖ 49%-owned via an associate company ❖ Leading Video Lottery Terminal (VLT) facility in New ❖ 1 of 4 commercial gaming-licensed casinos in the New York State Yo
Slide 20: New Leisure Properties – Genting Malaysia
Leisure & Hospitality BUSINESS REVIEW NEW LEISURE PROPERTIES – GENTING MALAYSIA Resorts World Hudson Valley Expansion of portfolio – UK casinos ❖ New York State’s newest casino ❖ August 2022 – Genting Malaysia completed the acquisition ❖ Opened on 28 December 2022 of three casinos from Casino 36 UK
Slide 21: Genting Plantations
Plantation BUSINESS REVIEW GENTING PLANTATIONS* In RM million FY2022 FY2021 Change Revenue 3,189.8 3,130.2 ↑1.9% EBITDA 1,029.8 1,022.2 ↑0.74% EBITDA margin 32.3% 32.7% * Refers to Genting Plantations Group ❖ Stronger palm products prices in 2022 (crude palm oil: RM4,100/mt, 19% higher y-o-y, palm k
Slide 22: Downstream Manufacturing & AgTech
Downstream Manufacturing & AgTech BUSINESS REVIEW Downstream Manufacturing Agriculture Technology (“AgTech”) ❖ Uncertainties amidst volatile CPO prices ❖ Providing total solutions for agriculture to optimise yield, improve operational efficiency, enable traceability and enhance sustainability – via
Slide 23: Property
Property BUSINESS REVIEW Property Premium Outlets® ❖ Mixed fortunes for property market: ❖ Continue to focus efforts to bring in reputable brands ▪ Positive outlook: i-MILIKI scheme and the opening of ❖ Premium Outlets® recorded an all-time high revenue in 2022 International borders, also the transi
Slide 24: Genting Energy: Power and Oil & Gas
Power and Oil & Gas BUSINESS REVIEW GENTING ENERGY In RM million FY2022 FY2021 Change ❖ Overall, higher revenue and earnings reported in 2022, contributed by: Revenue – Power 1,040 1,053 (1%) ❖ Higher revenue and earnings from Oil & Gas division, mainly due to higher average crude oil prices Revenue
Slide 25: Genting Energy: Power and Oil & Gas
Power and Oil & Gas BUSINESS REVIEW GENTING ENERGY POWER OIL & GAS Banten power plant, Indonesia Chengdaoxi Block, China ❖ Achieved more than 80% plant physical availability in 2022 ❖ Stable performance – delivered ~2.9 million barrels of oil in 2022 ❖ Completed annual scheduled maintenance in Janua
Slide 26: Life Sciences
Life Sciences BUSINESS REVIEW ❖ For the past decade, Genting has invested in life science companies that are in various stages of research and development for new treatments and new ways to improve our health and lifestyle. Companies In various phases of research and development: • TauRx Pharmaceuti
Slide 27: Winner of multiple awards of excellence
Winner of multiple awards of excellence Genting Berhad Genting Malaysia Berhad Genting Singapore Malaysia’s Most Successful Sustainable Valuable Brand 2022 Best Integrated Resort 10th consecutive year CIPS, Asia Excellence in Procurement Awards Overall Winner (2021-2022) Best Use of Digital Technolo
Slide 28: Sustainability
55th Annual General Meeting SUSTAINABILITY 54th rdAGM 3 June 20222020 Copyright © 2021 2023 Genting Berhad 196801000315 (7916-A). 196801000315 (7916-A). All Rights All Rights Reserved. Reserved. nd 5255th AGM 53AGM 1 22 AGM June 2 2023 June 2021 # 28 # 28
Slide 29: Sustainability - Highlights
Sustainability - Highlights FY2022 Zero exceedance in local 190 GWh of New investment in environmental compliance at Clean energy solar energy Banten power plant since produced at Jangi project in China commercial operations Wind Farm in March 2017 38% reduction in carbon Protects 51 Gold Certificat
Slide 30: Sustainability: Environment - Biodiversity
Sustainability ENVIRONMENT - BIODIVERSITY Over 300 trees were salvaged during the construction of Resorts World Las Vegas in US Partnerships to protect endangered flora, Managing Borneo fauna and wildlife in pygmy elephants via Resorts World Genting, collaborative research Malaysia in Sabah, Malaysi
Slide 31: Sustainability: Environment - Facilities
Sustainability ENVIRONMENT - FACILITIES Genting Singapore Resorts World Las Vegas’s three hotel brands earned Sustainable Building Designs and Facilities Green Buildings – GOLD Certification under LEED Unprecedented technology and innovation at Resorts World Las Vegas – including one of the largest
Slide 32: Sustainability: Social
Sustainability SOCIAL Community outreach by Resorts World Las Vegas Assisting in the Batangkali Providing essential landslide search and Genting Energy supplies for Pahang flood rescue mission contributed donations for - Genting Malaysia - Genting Malaysia local community in Banten Beach clean-up fo
Slide 33: Prospects
Prospects ❖ Our Group remains cautiously optimistic on the near-term outlook of the leisure and hospitality industry and remains positive in the longer term ❖ The global economic environment is expected to gradually improve. However, downside risks continue to pre- dominate amid the ongoing geopolit
Slide 34: Minority Shareholders Watch Group (MSWG) and Responses
55th Annual General Meeting PRE-AGM QUESTIONS FROM THE MINORITY SHAREHOLDERS WATCH GROUP (“MSWG”) AND RESPONSES Copyright © 2023 Genting Berhad 196801000315 (7916-A). All Rights Reserved. 55th AGM 1 June 2023 ## 134
Slide 35: MSWG Q&A Part 1: Question 1
55th Annual General Meeting PRE-AGM QUESTIONS FROM MSWG & RESPONSES: PART 1: OPERATIONAL AND FINANCIAL MATTERS Question 1: The construction of Minion Land at Universal Studios Singapore and the rebranding of the S.E.A. Aquarium to the Singapore Oceanarium are progressing well. In addition, Resorts W
Slide 36: MSWG Q&A Part 1: Question 2
55th Annual General Meeting PRE-AGM QUESTIONS FROM MSWG & RESPONSES: PART 1: OPERATIONAL AND FINANCIAL MATTERS Question 2: The agriculture technology team will continue to provide total solutions and services to its core agribusiness in optimising yield, improving operating efficiency, enabling trac
Slide 37: MSWG Q&A Part 1: Question 3
55th Annual General Meeting PRE-AGM QUESTIONS FROM MSWG & RESPONSES: PART 1: OPERATIONAL AND FINANCIAL MATTERS Question 3: In the short-term, Genting Plantations expects palm oil prices to remain supported by increased demand due to widened discount against other edible oils and increased allocation
Slide 38: MSWG Q&A Part 1: Question 4
55th Annual General Meeting PRE-AGM QUESTIONS FROM MSWG & RESPONSES: PART 1: OPERATIONAL AND FINANCIAL MATTERS Question 4: Of the Group’s total land area of 243,361 hectares as at end of FY 2022, there is still a sizeable unplanted area totaling 76,714 hectares. (page 56 of AR 2022) Where is the unp
Slide 39: MSWG Q&A Part 1: Question 5
55th Annual General Meeting PRE-AGM QUESTIONS FROM MSWG & RESPONSES: PART 1: OPERATIONAL AND FINANCIAL MATTERS Question 5: In October 2022, TauRx Pharmaceuticals Ltd unveiled encouraging top-line results from their Phase 3 Alzheimer’s study, LUCIDITY. For people with early Alzheimer’s or mild cognit
Slide 40: MSWG Q&A Part 1: Question 6
55th Annual General Meeting PRE-AGM QUESTIONS FROM MSWG & RESPONSES: PART 1: OPERATIONAL AND FINANCIAL MATTERS Group RM Million Question 6: 2022 2021 a) What is the nature of other receivables with impairment loss Impairment loss – other receivables 47.4 11.8 of RM47.4 million? Why was there a huge
Slide 41: MSWG Q&A Part 1: Question 6 (continued)
55th Annual General Meeting PRE-AGM QUESTIONS FROM MSWG & RESPONSES: PART 1: OPERATIONAL AND FINANCIAL MATTERS Question 6: (continued) (b) Why was there a huge impairment loss of RM196.0 million on trade receivables in 2022? Has any impairment loss been recovered to-date and what is the probability
Slide 42: MSWG Q&A Part 2: Question 1
55th Annual General Meeting PRE-AGM QUESTIONS FROM MSWG & RESPONSES: PART 2: CORPORATE GOVERNANCE AND SUSTAINABILITY MATTERS Question 1: What is the justification for each of the three Executive Directors to receive such a significant increase in remuneration in FY 2022 considering that the Group st
Slide 43: MSWG Q&A Part 2: Question 1 (continued)
55th Annual General Meeting PRE-AGM QUESTIONS FROM MSWG & RESPONSES: PART 2: CORPORATE GOVERNANCE AND SUSTAINABILITY MATTERS Question 1: (cont’d) Response: The question is based on the group financial data which includes contributions from our subsidiaries. The proper context is to look from the Com
Slide 44: MSWG Q&A Part 2: Question 2
55th Annual General Meeting PRE-AGM QUESTIONS FROM MSWG & RESPONSES: PART 2: CORPORATE GOVERNANCE MATTERS Question 2: The Company has departed from applying the following Practices under Malaysian Code on Corporate Governance: Practice 1.3 - The positions of Chairman and CEO are held by different in
Slide 45: MSWG Q&A Part 2: Question 2 (continued)
55th Annual General Meeting PRE-AGM QUESTIONS FROM MSWG & RESPONSES: PART 2: CORPORATE GOVERNANCE MATTERS Question 2: (continued) Response: Practices 1.3, 5.6, 5.9 and 5.10 The implementation of these recommendations under the Malaysian Code on Corporate Governance needs to be considered, taking int
Slide 46: MSWG Q&A Part 2: Question 3
55th Annual General Meeting PRE-AGM QUESTIONS FROM MSWG & RESPONSES: PART 2: CORPORATE GOVERNANCE MATTERS Question 3: The Banten power plant has consistently been recognised for its good environmental management practices. It was accorded a blue rating for the Pollution Control, Evaluation and Ratin
Slide 47: Pre-AGM Questions from Registered Shareholders and Responses
55th Annual General Meeting PRE- AGM QUESTIONS FROM REGISTERED SHAREHOLDERS AND RESPONSES Copyright © 2023 Genting Berhad 196801000315 (7916-A). All Rights Reserved. 55th AGM 1 June 2023 ##14 47
Slide 48: Shareholders & Responses: TauRx
55th Annual General Meeting PRE-AGM QUESTIONS FROM SHAREHOLDERS & RESPONSES: 1. TAURX Questions: a) What is the status of the HMTM regulatory approval in the US and Canada? b) How is the Taurx process? Response: TauRx is currently pursuing regulatory interactions and submissions for HMTM. Please ref
Slide 49: Shareholders & Responses: RWI trademarks
55th Annual General Meeting PRE-AGM QUESTIONS FROM SHAREHOLDERS & RESPONSES: 2. RWI - trademarks Question: Genting Berhad's 50% indirectly owned associate Resorts World Inc Pte Ltd bought cruise trademarks from Genting HK unit last year. What is the impact to Genting Berhad ? Response: Resorts World
Slide 50: Shareholders & Responses: Outlook
55th Annual General Meeting PRE-AGM QUESTIONS FROM SHAREHOLDERS & RESPONSES: 3. Outlook Question: Will 2023 be better than 2022 or will be worse due to new challenges? Response: The Group posted good financial results for the first quarter of 2023, with revenue (RM5.8 billion) and EBITDA (RM1.8 bill
Slide 51: Shareholders & Responses: Resorts World Las Vegas
55th Annual General Meeting PRE-AGM QUESTIONS FROM SHAREHOLDERS & RESPONSES: 4. Resorts World Las Vegas Question: In Las Vegas’ competitive market, Fontainebleau casino-resort and MSG sphere are opening soon. Could [they] be a threat to Resorts World Las Vegas ? Response: While Fontainebleau will be
Slide 52: Shareholders & Responses: Resorts World Las Vegas
55th Annual General Meeting PRE-AGM QUESTIONS FROM SHAREHOLDERS & RESPONSES: 5. Resorts World Las Vegas Question: Is Genting thinking of getting more partners to bring Korean/Chinese artist(s) shows, to bring more footfalls to RWLV and to stand out from competitors ? Response: Resorts World Las Vega
Slide 53: Shareholders & Responses: Investments
55th Annual General Meeting PRE-AGM QUESTIONS FROM SHAREHOLDERS & RESPONSES: 6. Investments Questions: a) Referring to the Star article dated 15 March 2023: Landmarks Berhad, a 21.7% associate of Genting Berhad defaults on RM133m financing facility. Whether this will have any material impacts and/or
Slide 54: Shareholders & Responses: Dividend
55th Annual General Meeting PRE-AGM QUESTIONS FROM SHAREHOLDERS & RESPONSES: 7. Dividend Question: Why is the dividend payment of Genting (3182) same with Genting Malaysia (4715) ? Refer to market price, it doesn't make sense to GENTING shareholder, it also caused the Return of Dividend to become lo
Slide 55: Shareholders & Responses: Oil & Gas
55th Annual General Meeting PRE-AGM QUESTIONS FROM SHAREHOLDERS & RESPONSES: 8. Oil & Gas Question: a. How much profit do Kasuri Block in Indonesia’s Papua province generate? b. When will Genting Oil & Gas be listed in the market to release its value ? Response: a. It is too premature to estimate th
Slide 56: Shareholders & Responses: Minimum wage and Cukai Makmur
55th Annual General Meeting PRE-AGM QUESTIONS FROM SHAREHOLDERS & RESPONSES: 9. Minimum wage and Cukai Makmur Question: How would minimum wage and cukai makmur affect the company ? Response: Minimum wage has no impact on Genting Berhad as all of its employees are paid above the minimum wage. Total a
Slide 57: Shareholders & Responses: Share Price
55th Annual General Meeting PRE-AGM QUESTIONS FROM SHAREHOLDERS & RESPONSES: 10. Share Price Question As Genting’s shareholder, I am very disappointed when Genting share price keeps dropping post- covid. So, what is the plan to stabilise the stock price? Response: • In an efficient market, the stock
Slide 58: Shareholders & Responses: AGM door gifts
55th Annual General Meeting PRE-AGM QUESTIONS FROM SHAREHOLDERS & RESPONSES: 11. AGM door gifts Question: We have received questions from shareholders requesting for participation or door gifts such as e- vouchers, e-coupons or e-wallet credits as a token of appreciation for attending this virtual A
Slide 59: End of CFO Presentation / Disclaimer
55th Annual General Meeting End of CFO Presentation Disclaimer Some of the statements made in this presentation which are not statements of historical facts are forward-looking statements and are based on the current beliefs, assumptions, expectations, estimates, objectives and projections of the di