Mandarin Oriental International Limited
Mandarin Oriental International — Mandarin Oriental Hotel Group — FY2023 Earnings Presentation
31 slides from Mandarin Oriental International's earnings presentation, Mar 7, 2024
Slide 1: 2023 Annual Results
2023 Annual Results Mandarin Oriental Hotel Group 7 March 2024 MANDARIN ORIENTAL Mandarin Oriental Ritz, Madrid
Slide 2: Agenda
Agenda • 2023 Performance Highlights • Strategic Update • Operating Performance • Financial Results • Group Portfolio and Development Pipeline • Outlook for 2024 MANDARIN ORIENTAL Mandarin Oriental, Costa Navarino
Slide 3: Performance Highlights
2023 Annual Results Performance Highlights
Slide 4: Substantially improved financial performance; strengthened liquidity position; and good progress in development
2023 Review Substantially improved financial performance; strengthened liquidity position; and good progress in development • Underlying profit substantially improved to US$81m in 2023 and was more than double pre-pandemic levels.# • Management fees grew by 30% over 2022, driven by a gradual recover
Slide 5: Financial Results Highlights
2023 Financial Results Highlights Strong operating and financial performance boosted by record rates Total Combined Revenue Under Consolidated Revenue^ Management* US$1,890m US$558m ▲23% (vs 2022#) ▲32% (vs 2022#) ▲51% (vs 2019#) ▲14% (vs 2019#) Underlying Profit Attributable to Underlying EBITDA Sh
Slide 6: Strategic Update
2023 Annual Results Strategic Update
Slide 7: The Group continued to execute across its strategic priorities
2023 Key Highlights The Group continued to execute across its strategic priorities Mandarin Oriental Savoy, Zurich Mandarin Oriental, Jakarta 8 New Management Contracts and Capital Allocation Rebranding of Emirates Palace Mandarin 2 New Hotel Openings Oriental, Abu Dhabi Renovation of Mandarin Orien
Slide 8: Operating Performance
2023 Annual Results Operating Performance
Slide 9: Higher revenue than 2022 and 2019 driven by all regions
2023 Total Combined Revenue of Hotels Under Management Higher revenue than 2022 and 2019 driven by all regions Average % change in Total Combined Revenue of Hotels Under Management 2023 vs 2022 vs 2019 (US$ terms) 154% 51% 38% 20% 23% 5% 5% 4% EMEA* America Asia Total vs 22 vs 19 * Europe, the Middl
Slide 10: Revenue Per Available Room (RevPAR) Performance
2023 Revenue Per Available Room (‘RevPAR’) Performance All regions exceeded 2022 and pre-pandemic RevPAR levels, with a notably strong rebound in Asia Average % change in RevPAR 2023 vs 2022 vs 2019 (US$ terms) 75% 39% 41% 29% 18% 14% 10% 3% EMEA America Asia Total vs 22 vs 19 Note: Excludes hotels
Slide 11: Average Daily Rate
2023 Average Daily Rate Rates in EMEA and Asia further improved compared to 2022. Hotels in America reported a slight decline in rates over 2022 but remained substantially above pre-pandemic levels. Average % change in ADR 2023 vs 2022 vs 2019 (US$ terms) 52% 37% 25% 22% 15% 8% 4% -7% EMEA America A
Slide 12: Occupancy Performance
2023 Occupancy Performance Occupancy has fully recovered to pre-pandemic levels in EMEA and America in 2023; Asia recovered strongly over 2022 but remained below pre-pandemic levels Change in Occupancy by Region 2023 vs 2022 vs 2019 17ppts 11ppts 6ppts 3ppts 2ppts 1ppts -4ppts -7ppts EMEA America As
Slide 13: Management Business Performance
Management Business Performance Substantial growth in Management Business fee income • Total hotel management fees 30% higher than 2022. • Growth of hotel management fees in EMEA (+24% Y/Y) and Asia (+97% Y/Y excl. Singapore*) was exceptionally strong. Mandarin Oriental, Bodrum Mandarin Oriental Wan
Slide 14: Owned Hotels Performance
Owned Hotels Performance Owned Hotels contributions continued to improve in the second half of the year and exceeded 2019 levels • RevPAR of Owned Hotels exceeded 2022 by 32%, bolstered by the strong rebound in Hong Kong and Tokyo. • London and Geneva also delivered considerably Mandarin Oriental, H
Slide 15: Financial Results
2023 Annual Results Financial Results
Slide 16: Consolidated Revenue improved by 32% year-on-year
Consolidated Revenue Consolidated Revenue improved by 32% year-on-year supported by the strong rebound in Hong Kong and Tokyo Consolidated Revenue Consolidated Revenue (US$m) H1 H2 558 US$m 2023 2022* 2019* 2023 2023 491 421 Management 40 54 94 67 66 Business 487 452 Subsidiary 368 231 256 487 368 4
Slide 17: Underlying EBITDA Performance
Underlying EBITDA Performance Underlying EBITDA surpassed 2022 and 2019 levels, driven by increased profitability from the Management Business and higher contributions from Owned Hotels Underlying EBITDA Underlying EBITDA (Owned Hotels and Management Business) H1 H2 US$m 2023 2022* 2019* 178 2023 20
Slide 18: Underlying Profit and Loss
Underlying Profit and Loss Significant improvement in Underlying Profit; Owned Hotels returned to profitability in 2023 Underlying Profit/(Loss) Underlying Profit/(Loss) attributable to Shareholders Attributable To Shareholders 81 US$m 2023 2022* 2019* 41 Management Business 41 16 18 34 Owned Hotels
Slide 19: Loss Attributable to Shareholders
Loss Attributable to Shareholders Loss attributable to shareholders due to non-trading losses from the revaluation of the Causeway Bay redevelopment, partially offset by the gain on disposal in Jakarta Loss Attributable to Shareholders US$m 2023 Change 2022* 2019* Underlying Profit 81 ▲936% 8 34 Net
Slide 20: Cash Flow Statement
Cash Flow Statement Net decrease in cash primarily due to higher repayment of borrowings, partially offset by improved operating performance Summary Cash Flow Statement US$m 2023 2022 Operating Activities 141 56 Investing Activities 31 87 Financing Activities (215) (122) Net (decrease)/ increase in
Slide 21: Cash Flow Statement – Investing Activities
Cash Flow Statement – Investing Activities Gain on asset disposal in Jakarta and repayments of loans from associates and joint ventures were slightly offset by higher investment into the Causeway Bay site Cash Flow From Investing Activities US$m 2023 2022 Net capital expenditure on existing properti
Slide 22: Net Debt and Gearing
Net Debt and Gearing Liquidity position strengthened; Net debt reduced by 40% Net Debt and Liquidity US$m 2023 2022 Net debt 225 376 Adjusted shareholders’ funds* 4,637 4,897 Gearing^ 5% 8% Adjusted Net Asset Value per share (US$) 3.67 3.87 Cash balance 190 226 Undrawn committed debt facilities 659
Slide 23: Group Portfolio and Development Pipeline
2023 Annual Results Group Portfolio and Development Pipeline
Slide 24: Global Portfolio
Global Portfolio The Group operates 38 managed hotels AMERICA EMEA ASIA Boston Abu Dhabi Bangkok Canouan Barcelona Beijing Miami Bodrum Guangzhou New York Costa Navarino (new) Hong Kong Santiago Doha Jakarta Dubai Kuala Lumpur Geneva Macau Istanbul Sanya Lake Como Shanghai London Shenzhen Lucerne Si
Slide 25: Global Portfolio – Owned Hotels
Global Portfolio – Owned Hotels Of which 13 are owned or partially owned hotels AMERICA EMEA ASIA Boston Abu Dhabi Bangkok Canouan Barcelona Beijing Miami Bodrum Guangzhou New York Costa Navarino (new) Hong Kong Santiago Doha Jakarta Dubai Kuala Lumpur Geneva Macau Istanbul Sanya Lake Como Shanghai
Slide 26: Global Portfolio – Branded Residences
Global Portfolio – Branded Residences The Group manages 9 branded residences* London Boston New York Barcelona Bodrum Beverly Hills Taipei Macau Bangkok * Excluding Residences in Mayfair and Fifth Avenue in New York which were partially opened in Q4 2023 and will be fully opened in 1H 2024. MANDARIN
Slide 27: Expected Openings in 2024
Expected Openings in 2024 The Group expects to open four new hotels and residences in 2024 MANDARIN ORIENTAL MAYFAIR, LONDON MANDARIN ORIENTAL QIANMEN, BEIJING • Scheduled to fully open in • Scheduled to open in 1H 2024 2H 2024 • 50 rooms and 77 branded • 72 rooms residences MANDARIN ORIENTAL RESIDE
Slide 28: New Projects in the Pipeline
New Projects in the Pipeline Eight new management contracts since the start of 2023 Athens, Greece Budapest, Hungary Setouchi, Japan • Located on the • Renovation, • A high-ended Athenian Riviera repositioning and boutique resort • 123 rooms and 17 rebranding of the • 3 distinctive residences histor
Slide 29: Outlook for 2024
2023 Annual Results Outlook for 2024
Slide 30: 2024 Outlook
2024 Outlook Strong growth prospects with new leadership, strategic initiatives underway, and solid fundamentals • Demand for luxury leisure and resort hotels will continue to grow • Strength of the Mandarin Oriental brand • Steady growth in demand from group and corporate business segments • Rate l
Slide 31: Questions to Investors@mohg.com
Questions to Investors@mohg.com
Mandarin Oriental Hotel Group — FY2023 Earnings Presentation on 6ix