Galaxy Entertainment Group Limited · HKEX:27
Galaxy Entertainment — FY2015 Earnings Presentation
23 slides from Galaxy Entertainment's earnings presentation, Feb 25, 2016
Slide 1: Q4 and Annual Results for the period end December 31, 2015
Q4 and Annual Results for the period end December 31, 2015 February 25, 2016
Slide 2: Executive Summary
Executive Summary GEG: Continue to drive mass revenue and cost control • 4Q 2015 Group Adjusted EBITDA up sequentially by 18% to $2.5 billion, decreased 7% YoY • FY2015 Group revenue decreased by 29% YoY to $51 billion • FY2015 Group Adjusted EBITDA of $8.7 billion, a decrease of 34% YoY • Full year
Slide 3: Executive Summary
Executive Summary Broadway Macau™: Family friendly / Macau SME concept drives traffic across Cotai • Seven months’ revenue of $425 million and an Adjusted EBITDA of $(7) million • Hotel occupancy at virtually 100% Development Update: Galaxy Macau™ Phase 2 under budget and first international investm
Slide 4: Annual Results 2015
Annual Results 2015 February 2016 4
Slide 5: GEG Revenue / EBITDA FY2015
GEG Revenue / EBITDA FY2015 Fiscal 2015 Revenue declined 29% YoY to $51.0 billion while EBITDA dropped 34% YoY to $8.7 billion GEG Revenue (HK$’m) GEG EBITDA (HK$’m) YoY Revenue EBITDA $71,752 $13,223 $2,037 GEG Total (29)% (34)% $166 $465 $50,991 $166 $22,634 $3,458 $8,736 $1,918 $425 $318 Galaxy M
Slide 6: GEG FY2015 NPAS
GEG FY2015 NPAS 2015 NPAS declined 60% to $4.2 billion and decreased 49% on an adjusted basis to $5.4 billion after $1.2 billion of non- recurring charges FY2014 FY2015 YoY% HK$'m HK$'m Total Revenue $ 71,752 $ 50,991 -29% EBITDA $ 13,223 $ 8,736 -34% Depreciation and Amortization Expense $ 1,884 $
Slide 7: Q4 2015 Results
Q4 2015 Results February 2016 7
Slide 8: GEG Revenue Q4 2015
GEG Revenue Q4 2015 Group revenue in Q4 2015 grew 8% sequentially to $13.3 billion but declined 17% YoY Q4 Q3 15’ to Q4 15’ GEG Revenue (HK$’m) YoY QoQ GEG Total (17)% +8% $16,020 $514 $13,288 Galaxy Macau™ (11)% +11% $33 $12,332 $4,629 $519 $490 $172 $25 $26 $189 $2,965 StarWorld (36)% +1% $2,945 B
Slide 9: GEG EBITDA Q4 2015
GEG EBITDA Q4 2015 Group EBITDA in Q4 2015 grew 18% QoQ to $2.5 billion but declined 7% YoY GEG EBITDA (HK$’m) Q4 Q3 15’ to Q4 15’ YoY QoQ (7)% +18% $2,664 GEG Total $2,476 $164 $33 $2,101 $80 Galaxy Macau™ (1)% +21% $645 $94 $25 $557 $26 $514 StarWorld (14)% +8% $2,045 $2,034 $1,683 Broadway Macau™
Slide 10: Galaxy Macau
Galaxy Macau February 2016 10
Slide 11: Galaxy Macau Q4 2015
Galaxy Macau Q4 2015 Galaxy Macau™ Q4 2015 EBITDA grew 21% QoQ to $2.0 billion Revenue Q4 Q3 15’ to Q4 15’ • Second full quarter of operation of Phase 2 YoY QoQ which is ramping up steadily Galaxy Macau™ (11)% +11% VIP Gaming# (30)% +16% • Total revenue of $9.6 billion grew 11% QoQ but decreased 11
Slide 12: StarWorld Macau
StarWorld Macau February 2016 12
Slide 13: StarWorld Macau Q4 2015
StarWorld Macau Q4 2015 StarWorld Macau Q4 2015 EBITDA grew 8% QoQ but declined 14% YoY to $557 million Q4 Q3 15’ to Q4 15’ Revenue YoY QoQ • Total revenue of $3.0 billion grew 1% QoQ but StarWorld Total (36)% +1% declined 36% YoY VIP Gaming# (52)% (6)% • VIP revenue declined 6% QoQ and 52% YoY Mass
Slide 14: Broadway Macau™
Broadway Macau™ February 2016 14
Slide 15: Broadway Macau™ Q4 2015
Broadway Macau™ Q4 2015 Broadway Macau™ reported $172 million revenue and $(4) million EBITDA for Q4 2015 • Total revenue $172 million • Virtually broke even with EBITDA of $(4) million including bad luck which reduced EBITDA by approximately $7 million • Revenue mix was approximately 75% gaming and
Slide 16: Selected Awards 2015
Selected Awards 2015 Award Organization Casino Operator of the Year – Australia / Asia International Gaming Awards 年度最佳娛樂場營運商 – 澳洲 / 亞洲 國際博彩業大獎 Best Managed Company – Gaming in Asia Euromoney Magazine 最佳管理公司 – 亞洲博彩業 《歐洲貨幣》雜誌 GEG The Asset Corporate Awards 2015 - Titanium Award (Investor Relations) 《
Slide 17: City Clubs
City Clubs City Clubs’ Q4 2015 EBITDA of $25 million, declined 4% from Q3 2015 and decreased 24%YoY City Clubs EBITDA (HK$’m) $33 $26 $25 2014 Q4 2015 Q3 2015 Q4 February 2016 17
Slide 18: Construction Materials
Construction Materials CMD’s Q4 2015 EBITDA of $80 million, decreased 15% QoQ and declined 51% YoY Construction Materials EBITDA (HK$’m) $164 $94 $80 2014 Q4 2015 Q3 2015 Q4 February 2016 18
Slide 19: Cash and Long-term Debt Update
Cash and Long-term Debt Update GEG continues to remain well capitalized with Cash of $7.7 billion at December 31, 2015 including restricted cash of $0.5 billion, “Net Cash” position of $6.5 billion and virtually debt free Cash on Hand and Net Cash (HK$ billion) Cash on Hand Net Cash $9.0 $8.2 $7.7 $
Slide 20: GEG Development Update
GEG Development Update Galaxy Macau™ Phase 2 • Development cost savings of $400-$500 million on the $19.6 billion Galaxy Macau™ Phase 2 Cotai Phases 3 & 4 • Site investigation works expected to commence in 2016 Hengqin • Plans to develop a world class destination resort on a 2.7 sq.km land parcel mo
Slide 21: Summary Positioned for Growth
Summary Positioned for Growth Corporate • 4Q15 Revenue of $13.3 billion and EBITDA of $2.5 billion, up 8% and 18% QoQ, respectively • Delivered approx. $500 million of operational cost savings in 2015 • towards the $800 million target, additional $300 million in 2016 Paid 2 special dividends in the
Slide 22: 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 23: Q4 and Annual Results for the period end December 31, 2015
Q4 and Annual Results for the period end December 31, 2015 February 25, 2016
Galaxy Entertainment Group — FY2015 Earnings Presentation on 6ix