Genting Malaysia Bhd. · MYX:GENM
Genting Malaysia Bhd — CLSA Investors' Forum 2018
45 slides from Genting Malaysia Bhd's conference presentation, September 2018
Slide 1: Corporate Presentation
No. 58019-U Corporate Presentation CLSA IF2018 Hong Kong September 2018
Slide 2: Agenda
1 GROUP OVERVIEW 2 KEY PROPERTIES 3 FINANCIAL HIGHLIGHTS 4 MALAYSIA OPERATIONS 5 OVERSEAS OPERATIONS • UNITED KINGDOM & EGYPT • US & BAHAMAS 6 PROSPECTS & FOCUS 2
Slide 3: Group Corporate Structure
OVERVIEW GROUP CORPORATE STRUCTURE Berhad 49.3% Malaysia US & Bahamas UK & Egypt 100% 100% 100% 100% 78% 100% 100%
Slide 4: Group's Key Properties
OVERVIEW GROUP’S KEY PROPERTIES Resorts World Genting (RWG) Resorts World Casino New York City Malaysia’s largest integrated resort Market leader in the Northeast US region destination ~7.6m visitors in FY2017 ~23.6m visitors in FY2017 ~10,500 rooms across 7 hotels ~1,000 employees ~13
Slide 5: Malaysia
MALAYSIA
Slide 6: Malaysia Resorts World Genting
MALAYSIA RESORTS WORLD GENTING ……… Bringing you the ultimate leisure and hospitality experience 6
Slide 7: UK Genting UK Resorts World Birmingham
GENTING UK UK RESORTS WORLD BIRMINGHAM ……… One of the leading casino operators in the UK 7
Slide 8: US Resorts World Casino New York City
RESORTS WORLD CASINO US NEW YORK CITY ………Market leader by gaming revenue in the Northeast US region 8
Slide 9: Bahamas Resorts World Bimini
BAHAMAS RESORTS WORLD BIMINI ……… 750-acre luxury beachfront casino resort 9
Slide 10: Financial Highlights
W) GHLIGHT GENTING MALAYSIA @
Slide 11: Financial Highlights – 2Q18 & 1H18
OVERVIEW FINANCIAL HIGHLIGHTS – 2Q18 & 1H18 % % In RM’mil 2Q18 2Q17 1H18 1H17 Change Change Revenue 2,422 2,292 ↑6% 4,822 4,516 ↑7% Adjusted EBITDA 702 536 ↑31% 1,310 1,101 ↑19% Adjusted EBITDA Margin 29% 23% 27% 24% Net Profit 378 174 ↑>100% 720 469 ↑54% Improved performance aided by Malaysian op
Slide 12: Revenue & Adjusted EBITDA by Geography – 1H18
OVERVIEW REVENUE & ADJUSTED EBITDA BY GEOGRAPHY – 1H18 Revenue Adjusted EBITDA US & US & UK & Bahamas UK & Bahamas Egypt 15% 18% Egypt 12% 5% Malaysia Malaysia, 67% 83% 12
Slide 13: Capital Management Strategy
OVERVIEW CAPITAL MANAGEMENT STRATEGY Dividend per Share 20 Net dividend per share (sen) 16.50* 17.00* 16 8.00 7.30 12 8 9.20 9.00 6.00 6.60 7.13 6.50 7.10 4.00 4 - FY12 FY13 FY14 FY15 FY16 FY17 1H17 1H18 *Includes a special dividend of 8.0 sen (FY16: 7.3 sen) per share Dividend FY17 net dividend g
Slide 14: Malaysia Operations
MALAYSIA . OPERATIONS = Eee
Slide 15: Malaysia – Leisure & Hospitality Performance Review – 2Q18 & 1H18
MALAYSIA – LEISURE & HOSPITALITY PERFORMANCE REVIEW – 2Q18 & 1H18 % % In RM’mil 2Q18 2Q17 1H18 1H17 Change Change Revenue 1,591.9 1,445.4 ↑10% 3,191.4 2,789.7 ↑14% Adjusted EBITDA 540.2 434.7 ↑24% 1,073.9 872.1 ↑23% Adjusted EBITDA 34% 30% 34% 31% Margin Improved hold percentage in the mid to prem
Slide 16: Malaysia – Leisure & Hospitality Revenue
MALAYSIA – LEISURE & HOSPITALITY PERFORMANCE REVIEW IN 1H18 Revenue (RM’mil) 7,000 5,684 5,623 5,835 6,000 5,490 5,362 5,577 5,000 4,000 3,191 3,000 2,790 2,000 1,000 - FY12 FY13 FY14 FY15 FY16 FY17 1H17 1H18 Higher business volumes following the roll out of new GITP attractions Higher hold perc
Slide 17: Malaysia – Leisure & Hospitality Adjusted EBITDA
MALAYSIA – LEISURE & HOSPITALITY PERFORMANCE REVIEW IN 1H18 Adjusted EBITDA (RM’mil) / Margin (%) 3,000 42% 37% 35% 35% 35% 35% 34% 2,500 31% 31% 35% 2,042 1,972 1,860 1,931 1,942 2,000 1,805 28% 1,500 21% 1,074 1,000 872 14% 500 7% - 0% FY12 FY13 FY14 FY15 FY16 FY17 1H17 1H18 Improving adjusted E
Slide 18: RWG Key Statistics in 1H18
MALAYSIA RWG KEY STATISTICS IN 1H18 12.8m 73% VISITORS DAY-TRIPPERS (1H17: 10.6m) ↑21% (1H17: 70%) 4.4m 4.7m MEMBERS TICKETS SOLD (1H17: 3.7mil) ↑10% (1H17 : 4.0mil) ↑26% 18
Slide 19: RWG Hotel Performance in 1H18
MALAYSIA RWG HOTEL PERFORMANCE IN 1H18 10,500 1.7m ROOMS ROOM NIGHTS SOLD 7 HOTELS (1H17: 1.6m) ↑9% RM105 96% AVRG ROOM RATE OCCUPANCY ↑15% (1H17: RM91) (1H17: 93%) 19
Slide 20: Genting Integrated Tourism Plan (GITP)
GENTING INTEGRATED TOURISM PLAN (GITP)
Slide 21: GITP Overview
GITP OVERVIEW A 10-year master plan launched in Dec 2013 RM10.4 billion capital investment Invested RM7.0 billion as at 30 June 2018 ..……… The next phase of growth at RWG 21
Slide 22: GITP Overview
GITP OVERVIEW 2016 Awana SkyWay Cable Car SkyAvenue Mall 2015 First World Hotel (Tower 3) 2017 2018 onwards SkyCasino Skytropolis Indoor Theme Genting Highlands Premium Park Outlets* 20th Century Fox Theme Theme Park Hotel Park Crockfords Hotel Additional Luxury Hotels 2015 2016 2017 2018 onwards *A
Slide 23: GITP Awana SkyWay
GITP AWANA SKYWAY SkyAvenue Mall Awana SkyWay cable car system Awana Station Awana Hotel Genting Highlands Premium Outlets Denotes Denotes Awana Awana SkyWay SkyWay route route ..….. Transporting visitors to key attractions at the resort 10
Slide 24: GITP SkyAvenue
GITP SKYAVENUE …………Exciting retail and dining experience at 6,000 feet 24
Slide 25: GITP SkyAvenue – F&B Outlets
GITP SKYAVENUE – F&B OUTLETS Burger & Lobster Red Tail Malaysian Food Street Motorino …..…… Unique dining experience featuring renowned restaurants 25
Slide 26: GITP Theme Park Hotel
GITP THEME PARK HOTEL ..…..A 448-room boutique hotel with quirky and playful decor 26
Slide 27: GITP SkySymphony
GITP SKYSYMPHONY ……Extraordinary orchestra of audio, visual and motion graphics 27
Slide 28: GITP Crockfords Platinum Club
GITP CROCKFORDS PLATINUM CLUB …………A luxurious space for the discerning customer 28
Slide 29: GITP Crockfords Hotel
GITP CROCKFORDS HOTEL …..….. A 137-room hotel providing guests the ultimate comfort and luxury 29
Slide 30: GITP Fox World Studio Store
GITP FOX WORLD STUDIO STORE …..…..The world’s first Fox specialty store 30
Slide 31: UK, US & Bahamas
UK US & Bahamas Egypt Malaysia 31
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Slide 33: UK & Egypt – Leisure & Hospitality Performance Review
UK & EGYPT – LEISURE & HOSPITALITY PERFORMANCE REVIEW IN 2Q18 & 1H18 % % In £’mil 2Q18 2Q17 1H18 1H17 Change Change Revenue 81.0 74.3 ↑9% 156.4 159.1 ↓2% Adjusted EBITDA 5.5 6.4 ↓15% 11.1 20.5 ↓46% Adjusted EBITDA 7% 9% 7% 13% Margin 2Q18 adjusted EBITDA impacted by: • Overall lower business volum
Slide 34: UK & Egypt – Performance Review – 1H18
UK & EGYPT – LEISURE & HOSPITALITY PERFORMANCE REVIEW – 1H18 Revenue (£’mil) 400 362 339 324 317 320 290 240 231 159 156 160 80 - FY12 FY13 FY14 FY15 FY16 FY17 1H17 1H18 1H18 revenues impacted by lower business volumes in the premium gaming segment 34
Slide 35: Genting Malaysia
GENTING MALAYSIA
Slide 36: US & Bahamas – Leisure & Hospitality Performance Review
US & BAHAMAS – LEISURE & HOSPITALITY PERFORMANCE REVIEW IN 2Q18 & 1H18 % % In US$’mil 2Q18 2Q17 1H18 1H17 Change Change Revenue* RWNYC and RW Omni 75.3 74.4 ↑1% 152.3 146.9 ↑4% RW Bimini 6.8 8.4 ↓19% 13.1 12.6 ↑4% Total 82.1 82.8 ↓1% 165.4 159.5 ↑4% Adjusted EBITDA* RWNYC and RW Omni 28.1 30.6 ↓1% 5
Slide 37: RWNYC – Performance Review – 1H18
RWNYC – LEISURE & HOSPITALITY PERFORMANCE REVIEW – 1H18 Revenue (US$’mil) 300 240 250 251 238 239 240 211 180 131 130 120 60 - FY12 FY13 FY14 FY15 FY16 FY17 1H17 1H18 Continues to lead the Northeast US region at approx. 41.1%1 market share in 1H18 ~6,000 machines in operation at the facility (1H
Slide 38: Resorts World Omni Hilton Miami Downtown
RESORTS WORLD OMNI US HILTON MIAMI DOWNTOWN 38
Slide 39: US RWNYC Expansion
US RWNYC EXPANSION Broke ground on a USD400 million expansion in July 2017 New attractions include a new 400-room hotel, additional gaming space and a variety of dining, entertainment and retail experiences Scheduled to open in phases from end of 2019 ArtistImpression Artist Impression 39
Slide 40: US First Light Resort & Casino
US FIRST LIGHT RESORT & CASINO Invested approx. US$426.3 million* in interest bearing promissory notes Development of the project is currently stalled pending further court developments and/or actions by relevant governmental authorities** The Group is working closely with the Tribe to review
Slide 41: Malaysia
MALAYSIA
Slide 42: Looking Ahead: Prospects and Focus – Resorts World Genting
LOOKING AHEAD PROSPECTS AND FOCUS Resorts World Genting Leverage on new facilities and attractions Improve yield contribution Expand into regional markets Enhance digital and strategic marketing efforts Intensify database marketing 42
Slide 43: Looking Ahead: Prospects and Focus – UK & Egypt
LOOKING AHEAD PROSPECTS AND FOCUS UK & Egypt Premium Players Segment: Manage business volatility Non-premium Players Segment: Improve business efficiency and grow market share RW Birmingham: Grow volume of business Resorts World Birmingham Crockfords Cairo 43
Slide 44: Looking Ahead: Prospects and Focus – US & Bahamas
LOOKING AHEAD PROSPECTS AND FOCUS US & Bahamas RWNYC: Continue to boost direct marketing efforts and focus on RWNYC’s USD400 million expansion RW Omni: Leverage on the newly renovated Hilton Miami Downtown RW Bimini: Improve operational efficiency and focus marketing efforts on leisure markets
Slide 45: Disclaimer
Disclaimer Some of the statements made in this presentation which are not statements of historical facts are forward-looking statements and are based on the current beliefs, assumptions, expectations, estimates, objectives and projections of the directors and management of the Genting Malaysia Group