Shangri-la Asia Limited · HKEX:69
Shangri-la Asia — FY2019 Earnings Presentation
19 slides from Shangri-la Asia's earnings presentation, Mar 27, 2020
Slide 1: Shangri-la Asia Ltd 2019 Annual Results
Shangri-la Asia Ltd 2019 Annual Results 27 March 2020
Slide 2: FY2019 Business update
FY2019 Business update Year of challenges • Trade war lingered, impacting Mainland China, HK and Singapore • Prolonged demonstrations in Hong Kong • Sri Lanka Easter tragic bombing incident Mitigation actions • Increased focus on Chinese domestic leisure market (family packages, catering and F&B pro
Slide 3: FY2019 Business update: Major events of the year
FY2019 Business update Major events of the year Hotels New Opening • Shangri-La Suzhou Yuanqu (hotel management) • Launch of family suites (Harbin and Qinhuangdao) Acquisitions • Completed 2 land acquisitions for hotel development (Bangkok, Kyoto) • Acquired remaining 25% equity interest of Shangri-
Slide 4: Financial Highlights
Financial Highlights FY19A FY18A In USD million 19A v 18A % Change (HKFRS16) (HKAS17) Revenue 2,431.2 2,517.9 (86.7) (3.4%) EBITDA 584.0 664.5 (80.5) (12.1%) EBITDA Margin 24.0% 26.4% (237)bps Effective share of EBITDA (Note 1) 864.9 940.9 (76.0) (8.1%) Effective EBITDA Margin 29.7% 31.1% (143)bps O
Slide 5: Effective Share of EBITDA by Segment
Effective Share of EBITDA by Segment In USD million (1) Effective Share of EBITDA 2019 Actual vs 2018 Actual V% Hotel Properties – decreased USD107.0m to USD518.7m 940.9 • HK hotels USD52.0m Property Sales 864.9 (8.1)% • SLIM* USD47.8m & others 99.4 • China hotels USD29.5m 113.4 14.0% • Partially
Slide 6: Impact of Hotel Properties from Hong Kong, Mainland China and Sri Lanka
Impact of Hotel Properties from Hong Kong, Mainland China and Sri Lanka Operating PATMI 100 90 80 70 37.4 USDm 60 50 18.8 89.9 11.2 40 30 60.1 20 10 - FY18 PATMI HK China Others FY19 PATMI 6
Slide 7: Financial Highlights – FY2019 Non-operating items
Financial Highlights –FY2019 Non-operating items Total PATMI movements 180 160 20.4 21.9 1.4 6.8 140 10.9 120 20.8 USDm 100 80 152.5 60 113.8 40 20 - Operating PATMI FV gain (Wuhan and FV gain FV gain (associates*) Impairment (Jen Disposal of Shanghai Others Total PATMI Colombo mall & (improvement o
Slide 8: Corporate Finance and Treasury Update
Corporate Finance and Treasury Update
Slide 9: Cash, Debt and Gearing Summary (as of Dec 2019)
Cash, Debt and Gearing Summary (as of 31 Dec 2019) Capital Structure Overview and Debt Breakdown / Debt Maturity Schedule (USDmn) Net Debt Cash & Cash equivalent $4.2b $0.1b* $1.0b Weighted Average Term : 4.21 5,243 Net Debt/Equity 64.9% 3.9pts** Committed Undrawn Facilities 1,045 $1.0b 644 744 794
Slide 10: Movement of cashflows
Movement of cashflows 1,800 1,600 1,400 343.5 530.3 1,200 208.1 131.0 101.4 107.9 158.9 1,000 USDm 800 600 1,059.4 1,016.7 400 200 - Cash at 1/1/2019 Cash from CAPEX Net finance cost Dividend income Dividend paid to Net change in Others Cash at operations SA shareholders debt 31/12/2019 10
Slide 11: Update on COVID-19
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Slide 12: Unprecedented Global Impact
Unprecedented Global Impact COVID-19 is an unprecedented global pandemic impacting the operations of our Group worldwide • Hotel operations in China quickly deteriorated since Wuhan’s shutdown on 23 January 2020 • China average occupancy hit a low of 2.6% in mid February • Occupancy stabilised durin
Slide 13: Although China may seem to have stabilised for now…
Although China may seem to have stabilised for now… Most of other destinations we operate in have recently begun closing their borders to foreigners • EU, Canada, India, Australia, Singapore, Malaysia, Saudi Arabia etc. • Most of such destinations are seeing occupancies heading down to single digits
Slide 14: Cost Measures to Lower Impact from COVID-19
Cost Measures to Lower Impact from COVID-19 Cost measures at hotels that are impacted by the virus: • Reduce non-labour costs by 20-75% depending on operational status • Shorten operating hours, manage utilities usage, review third party contracts • China achieved 75% in Feb 2020 • Reduce labour cos
Slide 15: Appendix
Appendix
Slide 16: Owned Hotels Under Development
Owned Hotels Under Development Group’s Equity Projected Interest Opening Subsidiaries Zhengzhou Hongqiao Airport • Hotel Jen, Bangkok 100% 2024 Putian Kunming Operating lease agreement • Shangri-La Hotel, Hongqiao Airport 2023 Bangkok JV with Kerry Properties Limited • Shangri-La Hotel, Putian 40% 2
Slide 17: Managed Hotels Under Development
Managed Hotels Under Development Beijing • Shangri-La Hotel, Bali • Hotel Jen, Kota Kinabalu Shanghai • Shangri-La Hotel, Jeddah (Not on the map) Nanning • Shangri-La Phnom Penh, Cambodia Qianhai • Shangri-La Hotel, Qian Tan Phnom Penh • Shangri-La Hotel, Nanning Kota Kinabalu • Shangri-La Hotel, Me
Slide 18: Composite Projects Under Development
Composite Projects Under Development Joint Ventures with Subsidiaries Shenyang Kerry Properties Limited • Phase II of Shangri-La Hotel, • Nanchang City Project Zhengzhou Wuhan • Equity interest: 20% • Equity interest: 92% • Phase I: Hotel & residential Wuhan • Component: Office completed • Projected
Slide 19: Cash, Debt and Gearing Summary as at Dec 2019
Cash, Debt and Gearing Summary as at 31 Dec 2019 • Net Debt / Equity ratio 66.4%, increase 5.4pts vs 61.0% last year. • Due to decrease in equity from HKFRS16 and RMB depreciation vs USD • Gross Debt / Equity ratio 81.2%, increase 4.6pts vs 76.9% last year. • Due to decrease in equity. • EBITDA / In