Galaxy Entertainment Group Limited · HKEX:27
Galaxy Entertainment — H1 2016 Earnings Presentation
27 slides from Galaxy Entertainment's earnings presentation, Aug 25, 2016
Slide 1: Interim Results 2016
Interim Results 2016 August 25, 2016
Slide 2: Executive Summary
Executive Summary GEG: Continues to Drive Mass Business, Profitable Volumes and Control Costs • 1H Group Adjusted EBITDA of $4.7 billion, up 13% YoY • 1H Group Net Profit Attributable to Shareholders (“NPAS”) of $2.6 billion, up 26 % YoY • Q2 Group Adjusted EBITDA of $2.3 billion, up 22% YoY and dow
Slide 3: Executive Summary
Executive Summary Broadway Macau™: Continues to Drive Visitations to our Cotai Portfolio • 1H Revenue of $350 million and 1H Adjusted EBITDA of $9 million • Q2 Adjusted EBITDA of $6 million • Hotel occupancy for Q2 was virtually 100% Cost Control: Achieved Initial $800 million Target and Identified
Slide 4: Executive Summary
Executive Summary Balance Sheet: Remains Well Capitalized, Liquid and Virtually Debt Free • Cash and liquid investments stood at $11.3 billion as at June 30, 2016, up 46% from December 31, 2015 • Virtually debt free with debt of $1.2 billion and net cash of $10.1 billion as at June 30, 2016 Special
Slide 5: Executive Summary
Executive Summary Development Update: Advancing Plans for Cotai Phases 3 & 4 and Hengqin • Cotai Phase 3 & 4 - Continue to move forward with Phase 3 with the potential to commence site preparation works in late 2016 and Phase 4 in 2017, with substantial floor area allocated to non- gaming and primar
Slide 6: Interim Results 2016
Interim Results 2016 August 25, 2016 6
Slide 7: GEG Revenue Summary 1H 2016
GEG Revenue Summary 1H 2016 Revenue in first half 2016 grew 1% YoY to $25.5 billion GEG Revenue (HK$’m) 1H 16’ YoY 2H 15’ to 1H 16’ $25,371 $25,620 $25,538 $909 $1,009 $991 GEG Total +1% 0 $64 $51$361 $56 $350 $56 $7,129 $5,910 $5,599 Galaxy Macau™ +8% +1% StarWorld (22)% (5)% Broadway Macau™ +447%
Slide 8: GEG EBITDA Summary 1H 2016
GEG EBITDA Summary 1H 2016 Group EBITDA increased 13% YoY to $4.7 billion in the first half of 2016 GEG EBITDA (HK$’m) $4,577 $4,706 1H 16’ YoY 2H 15’ to 1H 16’ $4,159 $205 $174 $56 $9 $144 $51 GEG Total +13% +3% $56 $977 $1,071 $1,114 Galaxy Macau™ +22% +6% StarWorld (12)% (9)% $3,717 $3,933 $3,229
Slide 9: GEG 1H 2016 NPAS
GEG 1H 2016 NPAS 1H 2016 NPAS increased 26% to $2.6 billion included $350 million of non-recurring charges (in HK$'m) 1H15 1H16 1H16 vs 1H15 Revenue $ 25,371 $ 25,538 1% EBITDA $ 4,159 $ 4,706 13% Net Profit attributable to shareholders (NPAS) $ 2,030 $ 2,558 26% Non-recurring Expenses $ 1,026 $ 353
Slide 10: GEG Special Dividends
GEG Special Dividends Today, GEG announced another special dividend of $0.18 per share to be paid on or about October 28, 2016 • The Group paid a special dividend of $0.15 (or 15 cents) per share on April 29, 2016 • Today, the Board is pleased to announce another special dividend of $0.18 (or 18 cen
Slide 11: Cash and Debt Update
Cash and Debt Update GEG continues to remain well capitalized with Cash and Liquid Investments of $11.3 billion at June 30, 2016 including restricted cash of $0.5 billion, “Net Cash” position of $10.1 billion and virtually debt free Cash and “Net Cash” on Hand (HK$’b) Cash & Liquid Investments Net C
Slide 12: Q2 2016 Results
Q2 2016 Results August 25, 2016 12
Slide 13: GEG Revenue Q2 2016
GEG Revenue Q2 2016 Group revenue in Q2 2016 grew 4% YoY to $12.2 billion but declined 9% QoQ GEG Revenue (HK$’m) Q2 Q1 to Q2 16’ YoY QoQ $13,369 GEG Total +4% (9)% $12,169 $11,702 $454 $26 $181 $449 $537 $2,918 $30 $169 Galaxy Macau™ +9% (11)% $25 $64 $2,681 $3,163 StarWorld (15)% (8)% $9,790 Broad
Slide 14: GEG EBITDA Q2 2016
GEG EBITDA Q2 2016 Group EBITDA in Q2 2016 up 22% YoY and down 7% sequentially to $2.3 billion GEG EBITDA (HK$’m) Q2 Q1 to Q2 16’ YoY QoQ $2,433 +22% (7)% $2,273 GEG Total $92 $26 $3 $113 $1,857 $512 $30 $6 Galaxy Macau™ +34% (7)% $96 $465 $25 $509 StarWorld (9)% (9)% $2,037 $1,896 $1,413 Broadway M
Slide 15: Galaxy Macau
Galaxy Macau August 25, 2016 15
Slide 16: Galaxy Macau Q2 2016
Galaxy Macau Q2 2016 Galaxy Macau™ Q2 2016 EBITDA grew 34% YoY and declined 7% QoQ to $1.9 billion Revenue Q2 Q1 to Q2 16’ • Total revenue of $8.8 billion grew 9% YoY but YoY QoQ declined 11% QoQ Galaxy Macau™ +9% (11)% VIP Gaming# (5)% (19)% • VIP revenue declined 5% YoY and 19% QoQ to $4.4 billio
Slide 17: StarWorld Macau
StarWorld Macau August 25, 2016 17
Slide 18: StarWorld Macau Q2 2016
StarWorld Macau Q2 2016 StarWorld Macau Q2 2016 EBITDA declined 9% YoY and QoQ to $465 million Q2 Q1 to Q2 16’ Revenue YoY QoQ • Total revenue of $2.7 billion declined 15% YoY StarWorld Total (15)% (8)% and 8% QoQ VIP Gaming (30)% (11)% • VIP revenue declined 30% YoY and 11% QoQ to Mass Gaming +20%
Slide 19: Broadway Macau™
Broadway Macau™ August 25, 2016 19
Slide 20: Broadway Macau™ Q2 2016
Broadway Macau™ Q2 2016 Broadway Macau™ reported $169 million revenue and $6 million EBITDA for Q2 2016 Q1 to Q2 16’ Revenue QoQ • Total revenue $169 million, Broadway Total (7)% Mass Gaming (12)% decreased 7% sequentially Slots +29% • Adjusted EBITDA of $6 million Non-Gaming +5% EBITDA +100% includ
Slide 21: City Clubs Q2 2016
City Clubs Q2 2016 City Clubs’ Q2 2016 EBITDA of $30 million, increased 20% YoY and 15% from Q1 2016 City Clubs EBITDA (HK$’m) $30 $26 $25 2015 Q2 2016 Q1 2016 Q2 August 25, 2016 21
Slide 22: Construction Materials Q2 2016
Construction Materials Q2 2016 CMD’s Q2 2016 EBITDA of $113 million, increased 18% YoY and 23% QoQ Construction Materials EBITDA (HK$’m) $113 $96 $92 2015 Q2 2016 Q1 2016 Q2 August 25, 2016 22
Slide 23: Selected Awards 2016
Selected Awards 2016 Award Organization The Most Generous Chinese of “Hurun Non-Mainland Chinese Philanthropy List 2016” Hurun Report 「2016 胡潤港澳台及海外華人慈善榜」首善 胡潤百富 GEG Socially Responsible Operator International Gaming Awards 負社會責任營運商 國際博彩業大獎 Best Integrated Resort Asia Gaming Awards 最佳綜合性度假村 亞洲博彩大獎 M
Slide 24: GEG Development Update
GEG Development Update Cotai Phases 3 & 4 • Continue to move forward with Phase 3 with the potential to commence site preparation works in late 2016 and Phase 4 in 2017, with substantial floor area allocated to non-gaming and primarily targeting MICE, entertainment and family facilities • Expect to
Slide 25: Summary Positioned for Growth
Summary Positioned for Growth Corporate • 1H 2016 Revenue of $25.5 billion and EBITDA of $4.7 billion, up 1% and 13% YoY, respectively • 2Q16 EBITDA of $2.3 billion, up 22% YoY • • 1H 2016 NPAS of $2.6 billion, up 26% YoY Special dividend of $0.15/share paid on April 29, 2016. Subsequently • Galaxy
Slide 26: 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 27: Interim Results 2016
Interim Results 2016 August 25, 2016
Galaxy Entertainment Group — H1 2016 Earnings Presentation on 6ix