Banyan Tree Holdings Limited · SGX:B58
Banyan Tree — FY2018 Earnings Presentation
28 slides from Banyan Tree's earnings presentation, February 2019
Slide 1: 4Q18 & FY18 Results Briefing
4Q18 & FY18 Results Briefing 1
Slide 2: Disclaimer
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 on, the informatio
Slide 3: Agenda
Agenda 1. Overview Eddy See 2. Key Segments Performance Review Kuan Chiet 3. Future Plans Ho KwonPing 3
Slide 4: Overview
\ ’ ~ | > 7 / 7 \ \ Zz ~ Z \ \ 4 / G y, / / =< > \ \ . by / \ \ j \ } ~S / % \ / ii y, \ gy A XN \ \ A | ( a Overview BANYAN TREE GS e Q, HOLDINGS BANYAN TREE’) ~ANGSANA~ CASSIA DHAWA
Slide 5: Overview: Group Financial Highlights
Overview Group Financial Highlights FY17 (S$’M) FY18 (S$’M) Change* REVENUE 317.5 329.0 4% OPERATING PROFIT 74.7 83.1 11% CASH EARNINGS** 31.9 44.1 38% Revenue 4% and Operating Profit 11% : revenue recognition from Property Sales segment. operating expenses. Partially offset by lower other income as
Slide 6: Key Figures
Key Figures1 23% S$0.77 S$206m discount NAV2 Per Share Share Price3 / NAV Cash and Cash Equivalents 47% S$0.9b S$83m 11x Net Gearing Ratio4 Enterprise Value5 EBITDA EV/EBITDA Note: 1. Financial figures as at 31-Dec-18. 2. NAV denotes Net Asset Value. 3. Share price based on closing share price of S$
Slide 7: Key Segments Business Review
Key Segments Business Review 7
Slide 8: Hotel & Fee-Based Business
Hotel & Fee-Based Business BANYAN TREE Lone SS te , ge ge a HOLDINGS . y ; ; BANYANTREE) ANGSANA~ “ CASSIA\ { ) DHAWA
Slide 9: Hotel Investments – Financial Performance
Hotel Investments – Financial Performance Operating Profit Highlights Owned Hotels1 QTD YTD QTD: S$'M $28.0 Absence of PPE written off in Morocco in 4Q17. 2.7m $24.0 profit from Cassia Bintan. Net S$18.0m $20.0 Net S$15.3m Partially offset by: profit from Thailand. $16.0 1.1m Absence of profit from
Slide 10: Fee-Based Business – Financial Performance
Fee-Based Business – Financial Performance Operating Profit Highlights S$'M QTD YTD QTD: $35.0 architectural & design 5.5m fees due to project $30.0 Total S$28.7m milestones. foreign exchange losses. $25.0 Total S$23.2m reservation & marketing $20.0 expenses (timing diff.). 24.2 YTD: $15.0 4.4m 20.5
Slide 11: Hotel Operating Performance – Ave Occupancy (%)
Hotel Operating Performance – Ave Occupancy (%) All Hotels (Same Store1) Highlights % QTD: 70% 2% points due to resorts in Thailand, Maldives, 68% China and Indonesia. 67% 66% 2018 64% YTD: 64% FY17: 62% 64% In line with last year 62% 62% 2017 60% 61% 60% 58% FY18: 62% 58% 56% 1Q 2Q 3Q 4Q 2018 2017
Slide 12: Hotel Operating Performance – Ave Room Rates (S$)
Hotel Operating Performance – Ave Room Rates (S$) All Hotels (Same Store1) Highlights S$ QTD: 390 15% 383 375 376 FY17: 345 YTD: 2018 360 359 4% 2017 Both periods due to 345 resorts in Thailand, China, Maldives and Indonesia. 330 326 319 FY18: 330 315 317 310 304 300 1Q 2Q 3Q 4Q 2018 2017 1. Same St
Slide 13: Hotel Operating Performance – RevPAR (S$)
Hotel Operating Performance – RevPAR (S$) All Hotels (Same Store1) Highlights S$ QTD: 265 18% 257 Due to lower OCC % and 250 ARR. 240 235 2018 FY17: 214 YTD: 222 220 5% 2017 208 Due to lower ARR. 205 186 FY18: 203 190 188 185 182 175 1Q 2Q 3Q 4Q 2018 2017 1. Same Store Concept excludes all new resor
Slide 14: Room Revenue Of Owned Hotels By Country Of Residence
Room Revenue Of Owned Hotels By Country Of Residence FY17 FY18 Others* Others* 12% 11% China SE Asia China SE Asia 12.6m 11.7m 22% 5% 24% 6% 25.6m 23.8m 4.8m 6.3m NE Asia NE Asia 13% 14.2m 14% 14.9m 105.5m 106.7m 7.8m 7.4m Middle East 29.2m Middle East 30.8m 7% 11.3m Europe 7% 11.7m 28% Europe Russi
Slide 15: Room Revenue Of All Hotels By Country Of Residence
Room Revenue Of All Hotels By Country Of Residence FY17 FY18 Others* Others* 15% 15% 47.5m SE Asia 47.5m SE Asia China 5% 5% 44% China 44% 14.3m 140.8m 16.2m NE Asia 142.2m 14% NE Asia 319.9m 15% 48.0m 45.3m 324.3m 11.0m 11.2m Middle East 13.5m Middle East 12.8m 3% 3% 45.5m 48.4m Russia Russia 4% 4%
Slide 16: Hotel Business – Forward Bookings
Hotel Business – Forward Bookings Owned Hotels1 (Same Store2) Highlights On-The-Book (“OTB”) Room Revenue US$'M 1Q19 vs 1Q18: 8% $25.0 Thailand 10%. 20.1 Non-Thailand 4%. $20.0 18.4 Overall 8%. 5.6 5.4 14.7 $15.0 14.1 4% 10.2 10.3 5.6 5.6 $10.0 7.9 4.1 3.8 7.3 14.5 13.0 3.2 3.8 $5.0 9.1 10% 8.5 6.1
Slide 17: Hotel Business – Forward Bookings
Hotel Business – Forward Bookings All Hotels (Same Store1) Highlights On-The-Book (“OTB”) Room Revenue US$'M 10% 1Q19 vs 1Q18: $50.0 Thailand 13%. 44.3 42.4 Non-Thailand 8%. $40.0 38.2 37.0 Overall 10%. 31.6 31.5 29.5 30.0 24.5 $30.0 26.4 22.5 22.4 8% $20.0 20.2 21.0 21.4 21.1 $10.0 17.9 15.7 17.9 1
Slide 18: Hotel Business – Projected Growth
Hotel Business – Projected Growth Steady Pipeline Growth Highlights Number of keys1 No. of Keys 16,000 CAGR of 23% based on 15,000 CAGR 2018 - 2022 = 23% 14,833 contracts completion 14,000 Past Current Future 651 dates. (2007) (2018) (2022) 13,000 53 hotels to be opened in Owned Hotels % 67% 27% 15%
Slide 19: Property Business
BANYAN TREE LOS: Ye E se @ Q, HOLDINGS . y ; BANYANTREE’) -ANGSANA~ “ CASSIA DHAWA
Slide 20: Property Business – Financial Performance
Property Business – Financial Performance Operating Profit1 Highlights S$'M QTD YTD QTD: $6.0 cost of properties recognised. 5.5 $5.0 sales commission. 2.6m Partially cushioned by revenue recognition. $4.0 4.2 41 units (4Q18) vs. 31 units in 4Q17 (4Q17). 3.1m $3.0 YTD: 2.9 revenue recognition $2.0 f
Slide 21: Property Business – Financial Performance: Sales Progress
Property Business – Financial Performance Sales Progress Highlights Unit QTD YTD S$'M YTD: 220 $150 Unrecognised Revenue 211 units 211 units sold (S$125.6m) as at 31.12.2018 : S$189.9m 195 units vs. 195 units (S$137.8m) 200 $135 Recognised in Year S$'M in FY17. 180 2019 74.6 $120 2020 70.3 Unrecogni
Slide 22: Property Business - Outlook
Property Business - Outlook Encouraging property sales momentum in Phuket Continuing strong response for Cassia Phuket and Laguna Park Phuket. Cassia Phuket (Ph. 3) launched end 2017 well received; 73% (out of 193 units) sold to date. In FY18, 144 units with total value of S$62 million sold for both
Slide 23: Future Plans
Wi; ~ : ° g \ Future Plans BANYAN TREE BANYAN TREE’) ~ANGSANA~ CASSIA DHAWA HOLDINGS
Slide 24: Future Plans – New Hotels Contracts Signed in 2018 - YTD
Future Plans – New Hotels Contracts Signed in 2018 - YTD Brand HMA MOU Banyan Tree 6 13 Angsana 10 10 Cassia 2 3 Dhawa 10 15 Total 28 41* * Include 21 Accor / Vanke leads. 24
Slide 25: Future Plans – 53 Hotels to be opened
Future Plans – 53 Hotels to be opened 19 new hotels BT = 12 17 new hotels AN = 2 BT = 4 CA = 1 AN = 5 DH = 4 CA = 2 DH = 6 10 new hotels BT = 4 2022 AN = 3 DH = 3 2021 7 new hotels BT= 1 2020 AN = 6 2019 25
Slide 26: Future Plans – Property Sales
Future Plans – Property Sales Existing Land Bank Land size (Hectares) 120 Gross Development Value (S$’Billion) 2.3 2019: Projects activated for development No. of Projects 5 Land size (Hectares) 9 Gross Development Value (S$’Billion) 0.3 Percentage of land bank to be utilized (Land size) 8% 26
Slide 27: Mission Statement
Mission Statement “ We want to build globally recognised brands which by inspiring exceptional experiences among our guests, instilling pride and integrity in our associates and enhancing both the physical and human environment in which we operate, will deliver attractive returns to our shareholders
Slide 28: Thank You
Thank You 28