Galaxy Entertainment Group Limited · HKEX:27
Galaxy Entertainment — H1 2011 Earnings Presentation
29 slides from Galaxy Entertainment's earnings presentation, Aug 31, 2011
Slide 1: Interim Results 2011
Interim Results 2011 August 31, 2011
Slide 2: Executive Summary for Half Year 2011
Executive Summary for Half Year 2011 GEG • Reported record first half results as EBITDA nearly doubles to $1.8 billion due to StarWorld and the opening of Galaxy Macau™ • Adjusted NPAS more than doubles to $1.3 billion StarWorld • Reported 12th consecutive quarter of EBITDA growth with $685 million
Slide 3: Q2 2011 Review
Q2 2011 REVIEW August 31, 2011 3
Slide 4: Galaxy Entertainment Group
Galaxy Entertainment Group August 31, 2011 4
Slide 5: GEG Revenue Summary Q2 2011
GEG Revenue Summary Q2 2011 Revenue in Quarter 2 grew 72% yoy driven by StarWorld & recently opened Galaxy Macau™ GEG Revenue (HK$’m) $7,941 % Change % Change $355 Q2 yoy Q1 to Q2 11 QoQ $165 $5,726 GEG Total +72% +39% $4,618 $292 $481 Galaxy Macau™ n/a n/a $5,037 $311 $386 StarWorld +29% +2% $4,953
Slide 6: GEG EBITDA Summary Q2 2011
GEG EBITDA Summary Q2 2011 Group EBITDA grew 93% yoy in Q2 2011 to an all time record of $1.1 billion • GEG reports 11th consecutive quarter EBITDA growth in Q2 with $1.1 billion • StarWorld reports 12th consecutive quarter of EBITDA growth with $685 million • Galaxy Macau™ contributes a healthy $37
Slide 7: GEG and StarWorld EBITDA - Latest 12 Months Summary
GEG and StarWorld EBITDA- EBITDA- Latest 12 Months Summary Generated LTM EBITDA ended June of $3.1 billion GEG (HK$’m) StarWorld (HK$’m) $2,502 $3,059 $2,332 $2,037 $2,526 $2,231 $1,798 $1,962 $1,633 $1,448 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 August 31, 2011 7
Slide 8: World Class, Asian Heart
© SRR GEG MACAU RP mR “World Class, Asian Heart” Ti TESS HM August 31, 2011 8
Slide 9: Galaxy Macau
Galaxy Macau August 31, 2011 9
Slide 10: Galaxy Macau Overview
Galaxy Macau Overview Welcomed Galaxy Macau™’s first guest on May 15th, 2011 Summary • Recorded Revenue of $2.4 billion and generated EBITDA of $376 million for our first 47 days ended June 30th • Reported strong occupancy of 88% for Q2 and finished with 92% for June • Exceeding target daily visita
Slide 11: StarWorld Macau
3% jah StarWorld- Macau
Slide 12: StarWorld Overview
StarWorld Overview Reported 12th consecutive quarter of EBITDA growth in Q2 with $685 million despite the opening of Galaxy Macau™ % Change % Change • Reported all time record revenue Revenue Q2 yoy Q1 to Q2 11 QoQ in Q2 with $5.1 billion driven by StarWorld Total +29% +2% record VIP volume and mass
Slide 13: Return On Investment (ROI)
Return On Investment (ROI) StarWorld annualized ROI continues to improve with 74%* StarWorld Annualized ROI as at June 30, 2011 (HK$'m) • StarWorld is one of the highest returning casinos $3,366 in the world with a 74% ROI $2,502 • StarWorld’s total investment cost was Q2 2011 $685 HK$3,366 million.
Slide 14: StarWorld EBITDA Margin
StarWorld EBITDA Margin Q2 2011 EBITDA margin of 24% reflects StarWorld’s efficiency especially given VIP focus HK GAAP US GAAP 24% 23% 23% 23% 21% 18% 13% 13% 13% 14% 11% 12% 2010 2010 2010 2010 2011 2011 2010 2010 2010 2010 2011 2011 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 August 31, 2011 14
Slide 15: StarWorld Hotel
StarWorld Hotel Q2 2011 occupancy outpacing all other 5-star hotels in Macau ADR (HK$) Occupancy Rate StarWorld Average of 5-Star Hotel in the market StarWorld Average of 5-Star Hotel in the market 97% 98% 84% $1,499 80% $1,503 $1,155 $1,152 2011 Q1 2011 Q2 2011 Q1 2011 Q2 Note: • StarWorld’s ADR in
Slide 16: StarWorld Hotel Recognition
StarWorld Hotel Recognition HOTEL AWARDS Award Name Organization Five-Star Diamond Award (2007 - 2011) The American Academy of Hospitality Sciences Best Service Hotel (2011) Golden Horse Award of China Hotel Best Consumer Satisfaction Hotel (2011) Golden Horse Award of China Hotel Top Ten Glamorous
Slide 17: City Clubs
© UR GEG ERIE GEG CITY CLUBS August 31, 2011 17
Slide 18: City Clubs
City Clubs City Clubs’ EBITDA grew a healthy 20% yoy to $49 million City Clubs EBITDA (HK$’m) $49 $41 2010 Q2 2011 Q2 August 31, 2011 18
Slide 19: Construction Materials
Construction Materials August 31, 2011 19
Slide 20: Construction Materials
Construction Materials EBITDA grew 16% yoy to $110 million • Solid performer with improving market Q2 EBITDA (HK$’m) conditions $110 $95 • Successfully executing slag and cement expansion strategies and shifting business mix towards higher margin products primarily through Joint Ventures in Mainland
Slide 21: 1H 2011 Review
1H 2011 REVIEW August 31, 2011 21
Slide 22: GEG 1H 2011 - Revenue
GEG 1H 2011- 2011- Revenue Revenue in first half 2011 grew 60% yoy to a record $13.7 billion driven by StarWorld & Galaxy Macau™ GEG Revenue (HK$’m) $13,667 % Change % Change $647 1H yoy 2H10 to 1H11 $646 GEG Total +60% +28% $8,571 Galaxy Macau™ n/a n/a $596 $702 $9,990 StarWorld +37% +8% City Clubs
Slide 23: GEG 1H 2011 - EBITDA
GEG 1H 2011- 2011- EBITDA Group EBITDA grew 84% yoy to a record $1.8 billion in the first half of 2011 led by StarWorld and Galaxy Macau™ GEG EBITDA (HK$’m) $1,818 % Change % Change 1H yoy 2H10 to 1H11 $178 $106 GEG Total +84% +46% $990 Galaxy Macau™ n/a n/a $163 $1,349 $71 StarWorld +53% +17% $884
Slide 24: GEG 1H 2011 - NPAS
GEG 1H 2011- 2011- NPAS Adjusted NPAS more than doubled to $1.3 billion for the first half of 2011 • Adjusted NPAS for the first half of 2011 excluding non-recurring: – Pre-Opening expenses associated with Galaxy Macau™ of $767 million – Non-cash charge from CB derivative component fair value change
Slide 25: Liquidity and Financing Update
Liquidity and Financing Update August 31, 2011 25
Slide 26: Long-term Debt & Cash on Hand
Long--term Debt & Cash on Hand Long GEG remains well capitalized with significant cash of $6.7 billion supported by strong operational performance • GEG remains liquid with total cash on hand of HK$6.7 billion at June 30, 2011 • Strengthened Balance Sheet with full conversion of $1.3 billion CB in M
Slide 27: Summary Positioned for Growth
Summary Positioned for Growth Operations • GEG reports ELEVEN consecutive quarters of EBITDA growth • StarWorld reports TWELVE consecutive quarters of EBITDA growth • Galaxy commenced • Galaxy Macau™ generated $376 million EBITDA in the first 47 days with a vision • Latest twelve months Group and St
Slide 28: 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 29: Interim Results 2011
Interim Results 2011 August 31, 2011
Galaxy Entertainment Group — H1 2011 Earnings Presentation on 6ix