Mandarin Oriental International Limited
Mandarin Oriental International — Mandarin Oriental Hotel Group — H1 2020 Earnings Presentation
23 slides from Mandarin Oriental International's earnings presentation, 2020
Slide 1: 2020 Half Year Results
2020 HALF YEAR RESULTS Mandarin Oriental Hotel Group
Slide 2: Chief Executive's Review
Chief Executive's Review • Unprecedented change in operating conditions for the industry • Substantial losses incurred as most hotels closed during 2Q • Cash preservation measures taken to reduce cash burn • Robust liquidity to sustain reduced business levels • Development pipeline progressing well
Slide 3: Results Overview
Results Overview Jun Jun US $ m 2020 2019 Combined Total Revenue* 276 641 Group Revenue# 96 280 Underlying EBITDA (50) 69 * Includes revenue from the total portfolio of owned and managed hotels # Includes revenue from the Group’s subsidiary hotels as well as the Group’s management and branding activ
Slide 4: Results Overview
Results Overview Jun Jun 2020 2019 Underlying (Loss)/Profit Attributable to Shareholders (US $ m) (102) 11 Net Non-Trading Losses (US $ m)# (334) (23) Underlying (Loss)/Earnings per Share (US ¢) (8.06) 0.85 Interim Dividend per Share (US ¢) - 1.50 Adjusted Net Asset Value per Share (US $) 4.34 4.70*
Slide 5: Cash Flow Overview
Cash Flow Overview • EBITDA cash outflow in 1H was US$43m* • Capital expenditures and investments of US$52m • Cash losses reduced with cost reduction measures • At end June 2020, US$187m of cash reserves and US$217m in available, committed debt facilities • Balance sheet strong, gearing remains low
Slide 6: Operational Performance
OPERATIONAL PERFORMANCE
Slide 7: Global Portfolio Operating Status at 30th June 2020
Global Portfolio Operating Status at 30th June 2020 Prague London Paris Munich Boston Geneva Beijing New York Madrid Lake Como Tokyo Barcelona Milan Washington DC Marrakech Bodrum Shanghai Doha Guangzhou Miami Dubai Hong Kong Sanya Taipei Abu Dhabi Bangkok Macau Canouan Kuala Lumpur Singapore Jakart
Slide 8: Quarterly RevPAR Performance
Quarterly RevPAR Performance Asia EMEA^ America 0% n.m. -20% -13% -20% -40% -60% -60% -80% -100% -90% -88% 1Q'20 vs 1Q'19 2Q'20 vs 2Q'19 • RevPAR in 2020 includes only the days in which hotels were operational (during the second quarter of 2020, COVID-19 resulted in the closure of several hotels). R
Slide 9: Owned Hotels Operating Performance in 1H 2020
Owned Hotels Operating Performance in 1H 2020 Asia • Majority remained open but all operated at low single-digit occupancies during 2Q • Hong Kong: revenues were 66% lower, leading to material losses • Singapore: awarded external government service contracts EMEA • All European hotels were effective
Slide 10: Redevelopment of The Excelsior Site
Redevelopment of The Excelsior Site • Commenced on 1st May 2019, due to complete in 2025 • Overall on track and demolition is scheduled to complete in August 2020 • Ground excavation is next phase of work – to last 28 months • Total construction costs of some US$650 million, US$26 million invested t
Slide 11: Development
DEVELOPMENT
Slide 12: Development Portfolio
DEVELOPMENT PORTFOLIO Moscow London Vienna New York Luzern Istanbul Beijing Barcelona Dallas Tel Aviv Nanjing Boca Raton Dubai Shenzhen Honolulu Grand Cayman Muscat Manila Phuket Saigon Expected to open within the next 5 years Hotels (19) Residences (13) MANDARIN ORIENTAL
Slide 13: Development Update
Development Update • 19 hotels under development and two standalone residences • Focus on city-centre and resort locations where brand is currently absent • Grow hotel portfolio by an average of three new properties per year • Several projects at an advanced stage of completion with 2021/22 openings
Slide 14: New Project
New Project Mandarin Oriental, Vienna (Management contract) • Housed in a heritage building that originally served as the city’s commercial law court from 1912 to 2003 • 151 rooms and 17 branded residences MANDARIN ORIENTAL
Slide 15: Financial Review
FINANCIAL REVIEW
Slide 16: Underlying EBITDA Performance
Underlying EBITDA Performance Key Highlights Jun Jun US $ m 2020 2019 Underlying EBITDA (50) 69 • Substantial losses despite cost contingencies and participation in government support schemes • Recognised US$10.9m of government payroll subsidy income in 1H 2020 • Owned hotels represented c.75% of th
Slide 17: Financial Review: Cash Flow Statement – Operating Activities
Financial Review Cash Flow Statement – Operating Activities Jun Jun US $ m 2020 2019 Operating Activities EBITDA from subsidiaries and non-cash items (42) 54 Dividends and interest from associates and JVs - 3 Working capital movement (1) (22) Net interest and other financing charges paid (7) (8) Tax
Slide 18: Financial Review: Cash Flow Statement – Investing Activities
Financial Review Cash Flow Statement – Investing Activities Jun Jun US $ m 2020 2019 Investing activities Net capital expenditure on existing properties (18) (31) Capex for redevelopment of The Excelsior (11) (4) Payment on Munich expansion - (1) Net advance to associates and joint ventures (23) (15
Slide 19: Financial Review: Summary Cash Flow Statement
Financial Review Summary Cash Flow Statement Jun Jun US $ m 2020 2019 Operating Activities (58) 23 Investing Activities (52) (52) Financing Activities Net drawdown of borrowings 32 14 Dividends paid - (19) Others (3) (3) Net decrease in cash (81) (37) Opening cash balance 1st January 271 247 Effect
Slide 20: Financial Review: Net Debt
Financial Review Net Debt Jun Dec US $ m 2020 2019 Net debt 412 300 Adjusted shareholders’ funds# 5,490 5,936 Gearing 8% 5% Adjusted net asset value per share (US $) 4.34 4.70 Hedging ratio on gross debt 45% 47% Average tenor on debt 3.6 years 4.2 years Cash 187 271 Undrawn committed debt facilities
Slide 21: Financial Review: Future Significant Capital Commitments
Financial Review Future Significant Capital Commitments US $ Timing Munich extension 139m 2020-24 Redevelopment of The Excelsior site 564m 2020-25 Total 703m MANDARIN ORIENTAL
Slide 22: 2020 Outlook
2020 Outlook • Look to reopen and rebuild in 3Q/4Q • Conditions remain uncertain and business levels will fluctuate • Performance of Hong Kong hotel key for 2H • Significant losses for 3Q, reduced losses in 4Q • Long-term luxury hospitality fundamentals remain strong • Launch of health & safety WeCa
Slide 23: Questions to investors@mohg.com
Questions to investors@mohg.com
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