Mandarin Oriental International Limited
Mandarin Oriental International — Mandarin Oriental Hotel Group — H1 2019 Earnings Presentation
26 slides from Mandarin Oriental International's earnings presentation, 2019
Slide 1: 2019 Half Year Results
2019 HALF YEAR RESULTS Mandarin Oriental Hotel Group
Slide 2: 2019 Half Year Performance and Highlights
2019 Half Year Performance and Highlights • Four new hotels opened – Beijing, Doha, Dubai, Lake Como • Re-opening of Mandarin Oriental, Hyde Park London • Two new management contracts signed • Results lower due to closure of The Excelsior and renovation in Bangkok • Otherwise, financial performance
Slide 3: 2019 Half Year Results Highlights
2019 Half Year Results Highlights Jun Jun US $ m 2019 2018^ restated Combined Total Revenue* 641 700 Group Revenue# 280 308 Underlying EBITDA 69 84 ^ The comparative figures in 2018 have been restated due to the adoption of new accounting standard IFRS 16 ‘Leases’ * Includes revenue from the total p
Slide 4: 2019 Half Year Results Highlights
2019 Half Year Results Highlights Jun Jun 2019 2018 restated Underlying Profit Attributable to Shareholders (US $ m) 11 22 # Net Non-Trading Losses (US $ m) (23) - Underlying Earnings per Share (US ¢) 0.85 1.76 Interim Dividend (US ¢) 1.50 1.50 Adjusted Net Asset Value per Share (US $) 4.61 4.62* #
Slide 5: 2019 Half Year RevPAR Performance
2019 Half Year RevPAR Performance 600 -3% 500 496 479 400 5% -1% 2018 US $ 300 -3% 304 320 281 279 2019 200 224 218 100 0 Asia EMEA* America Total • All references to RevPAR are in US dollar terms on a like-for-like basis, unless otherwise stated. The like-for-like basis only includes hotels that we
Slide 6: Current Global Portfolio
CURRENT GLOBAL PORTFOLIO Prague London Paris Munich Boston Geneva Beijing New York Barcelona Lake Como Tokyo Madrid Milan Washington DC Marrakech Bodrum Shanghai Doha Guangzhou Miami Dubai Hong Kong Sanya Taipei Bangkok Macau Canouan Kuala Lumpur Singapore Jakarta Santiago 32 hotels MANDARIN ORIENTA
Slide 7: 2019 Half Year Hotel Performance Asia – Overall RevPAR down 3%
2019 Half Year Hotel Performance Asia – Overall RevPAR down 3% Mandarin Oriental, Hong Kong Soft demand from corporate accounts Tokyo Strong market conditions Bangkok Partially closed in March for a major renovation and will re-open in October Singapore Market conditions remained steady Kuala Lumpur
Slide 8: 2019 Half Year Hotel Performance EMEA – Overall RevPAR down 3%
2019 Half Year Hotel Performance EMEA – Overall RevPAR down 3% London Performance encouraging since reopening Paris Demonstrations impacted city-wide demand Munich Performance in-line with previous year Geneva Improved average rates offset by lower occupancy Madrid Closed in February 2018 for restor
Slide 9: 2019 Half Year Hotel Performance America – Overall RevPAR up 5%
2019 Half Year Hotel Performance America – Overall RevPAR up 5% Boston Regained market leadership position Miami RevPAR growth of 7% New York Improved competitive position Washington D.C. Demand mix impacted average rates MANDARIN ORIENTAL
Slide 10: Development
DEVELOPMENT
Slide 11: Development Portfolio
DEVELOPMENT PORTFOLIO Moscow London Munich New York Istanbul Beijing Barcelona Boca Raton Dubai Shenzhen Honolulu Bangkok Grand Cayman Muscat Manila Phuket Saigon Bali Expected to open within 5 years Hotels (15) Residences (13) MANDARIN ORIENTAL
Slide 12: Development Strategy Review
Development Strategy Review • Focus on management contracts • Grow hotel, resort and residence portfolio across the world • Open three to four properties per year MANDARIN ORIENTAL
Slide 13: Hotel Openings
Hotel Openings Mandarin Oriental, Doha Mandarin Oriental Jumeira, Dubai Opened on 9th March 2019 Opened on 18th February 2019 Mandarin Oriental, Lago di Como Mandarin Oriental Wangfujing, Opened on 15th April 2019 Beijing Opened on 15th March 2019 MANDARIN ORIENTAL
Slide 14: New Project
New Project Mandarin Oriental Residences at 685 Fifth Avenue (Management contract) • 69 branded residences • Scheduled for completion in 2020 MANDARIN ORIENTAL
Slide 15: New Project
New Project Mandarin Oriental Etiler, Istanbul (Management contract) • Second luxury hotel in Istanbul • 158 rooms and 251 branded residences • Scheduled to open in 2022 MANDARIN ORIENTAL
Slide 16: Financial Review
FINANCIAL REVIEW
Slide 17: Underlying EBITDA Performance
Underlying EBITDA Performance Key Highlights • US$69 million, 18% lower than 1H 2018 • No earnings from The Excelsior from April onwards • Lower earnings in Bangkok from March onwards due to renovation • 2018’s first half results benefited from Las Vegas termination fee MANDARIN ORIENTAL
Slide 18: Financial Review: Non-trading Items
Financial Review Non-trading Items Jun Jun US $ m 2019 2018 Fire at Mandarin Oriental Hyde Park, London Repair expenses and write-off of tangible assets and other incidental expenses (8) (20) Insurance recovery for replacement of tangible assets and other incidental expenses 8 20 Closure of The Exce
Slide 19: Financial Review: Cash Flow – Operating Activities
Financial Review Cash Flow Statement – Operating Activities Jun Jun US $ m 2019 2018 restated Operating Activities EBITDA from subsidiaries 62 71 Dividends and interest from associates and JVs 3 3 Working capital movement (22) (24) Net interest and other financing charges paid (8) (6) Tax paid (4) (
Slide 20: Financial Review: Cash Flow – Investing Activities
Financial Review Cash Flow Statement – Investing Activities Jun Jun US $ m 2019 2018 restated Investing activities Net capital expenditure on existing properties (31) (36) Capex for redevelopment of The Excelsior (4) - Payment on Munich expansion (1) - Net advance to associates and joint ventures (1
Slide 21: Financial Review: Summary Cash Flow Statement
Financial Review Summary Cash Flow Statement Jun Jun US $ m 2019 2018 restated Operating Activities 23 62 Investing Activities (52) (41) Financing Activities Net drawdown of borrowings 14 24 Dividends paid (19) (19) Others (3) (3) Net (decrease)/increase in cash (37) 23 Opening cash balance 1st Jan
Slide 22: Financial Review: Net Debt
Financial Review Net Debt Jun Dec US $ m 2019 2018 restated Net debt 336 285 Adjusted shareholders’ funds# 5,828 5,827 Gearing 6% 5% Adjusted net asset value per share (US $) 4.61 4.62 # The Group’s investment properties under development are carried at fair value. Shareholders’ funds have been adju
Slide 23: Financial Review
Financial Review • Approximately 49% of Group’s debt hedged • Average remaining tenor of Group’s borrowings is 4.7 years • US$211 million of cash and US$268 million of undrawn committed facilities MANDARIN ORIENTAL
Slide 24: Future Significant Capital Commitments
Financial Review Future Significant Capital Commitments US $ Timing Madrid renovation (Group’s 50% share) 42m 2019-20 Munich extension 139m 2019-23 Redevelopment of The Excelsior 585m 2019-25 Total 766m • The Group’s strong balance sheet is well-placed to fund capital commitments through the use of
Slide 25: 2019 Outlook
2019 Outlook • Five new properties to open in 2019 • Additional new projects to be announced • Mixed trading conditions expected to continue • Results will benefit from the re-opening of the London hotel MANDARIN ORIENTAL
Slide 26: Questions to investors@mohg.com
Questions to investors@mohg.com
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