Galaxy Entertainment Group Limited · HKEX:27
Galaxy Entertainment — FY2019 Earnings Presentation
37 slides from Galaxy Entertainment's earnings presentation, Feb 27, 2020
Slide 1: Q4 and Annual Results for the period end December 31, 2019
Q4 and Annual Results for the period end December 31, 2019 27 February, 2020
Slide 2: Letter from the Chairman of GEG
Letter from the Chairman of GEG Fellow shareholders I wish to share with you my personal concern as a result of the outbreak of the coronavirus. As you are aware in late December 2019, the coronavirus was confirmed and many people have been impacted at different levels. I wish to express my heartfel
Slide 3: Prevention Efforts against Coronavirus
Prevention Efforts against Coronavirus Working closely with the Macau Government to promote health & safety of the community, our team members and guests; and to prevent the spread of the coronavirus • Supporting our staff and guests • Increased the frequency of cleaning and sanitation of our resort
Slide 4: Prevention Efforts against Coronavirus
Prevention Efforts against Coronavirus Working closely with the Macau Government to promote health & safety of the community, our team members and guests; and to prevent the spread of the coronavirus • Donation of MOP25 million to Hubei and Macau • Cash donation of MOP20 million through Galaxy Enter
Slide 5: Photo Collage of GEG Prevention Efforts against Coronavirus
Photo Collage of GEG Prevention Efforts against Coronavirus Working closely with the Macau Government to promote health & safety of the community, our team members and guests; and to prevent the spread of the coronavirus February 2020 5
Slide 6: Photo Collage of GEG Prevention Efforts against Coronavirus
Photo Collage of GEG Prevention Efforts against Coronavirus Working closely with the Macau Government to promote health & safety of the community, our team members and guests; and to prevent the spread of the coronavirus February 2020 6
Slide 7: Executive Summary
Executive Summary GEG: Strong Mass Performance, Solid VIP Q4 2019 • Q4 Group Net Revenue of $13.0 billion, down 8% year-on-year and up 2% quarter-on-quarter • Q4 Group Adjusted EBITDA of $4.1 billion, down 6% year-on-year and down 1% quarter-on- quarter • Played lucky in Q4 which increased Adjusted
Slide 8: Executive Summary: Galaxy Macau
Executive Summary Galaxy Macau™: Strong Mass Performance, Property Enhancement Program on Track Q4 2019 • Q4 Net Revenue of $9.3 billion, down 10% year-on-year and flat quarter-on-quarter • Q4 Adjusted EBITDA of $3.2 billion, down 6% year-on-year and up 1% quarter-on-quarter • Played lucky in Q4 whi
Slide 9: Executive Summary: StarWorld Macau
Executive Summary StarWorld Macau: Solid Mass Performance, Property Enhancement Program on Track Q4 2019 • Q4 Net Revenue of $2.7 billion, down 11% year-on-year and up 5% quarter-on-quarter • Q4 Adjusted EBITDA of $782 million, down 12% year-on-year and down 6% quarter-on-quarter • Played unlucky in
Slide 10: Executive Summary: Broadway Macau
Executive Summary Broadway Macau™: A Unique Family Friendly Resort, Strongly Supported By Macau SMEs Q4 2019 • Q4 Net Revenue of $154 million, versus $141 million in Q3 2019 and $144 million in Q4 2018 • Q4 Adjusted EBITDA of $16 million, versus $2 million in Q3 2019 and $8 million in Q4 2018 • Play
Slide 11: Executive Summary: Balance Sheet and Special Dividends
Executive Summary Balance Sheet: Healthy and Liquid Balance Sheet • As at 31 December 2019, cash and liquid investments were $52.3 billion and net cash was $51.7 billion • As at 31 December 2019, debt was $0.6 billion GEG Special Dividends • Paid two special dividends of $0.45 per share in April 201
Slide 12: Executive Summary: Development Update
Executive Summary Development Update: Continuing to Pursue Development Opportunities • Property Enhancement Program – Almost completed the previously announced $1.5 billion property enhancement program in both Galaxy Macau™ and StarWorld Macau, we have identified and are reviewing additional enhance
Slide 13: 2019 Annual Results
2019 Annual Results February 2020 13
Slide 14: GEG Revenue Summary FY2019
GEG Revenue Summary FY2019 Fiscal 2019 Net Revenue decreased 6% YoY to $51.9 billion GEG Net Revenue (HK$’m) $55,211 $51,902 Net Revenue YoY GEG Total (6)% Galaxy Macau™ (5)% $39,491 $37,441 StarWorld Macau (10)% Broadway Macau™ +6% $12,159 $10,917 City Clubs +5% $562 $593 $111 $117 (2)% $2,888 $2,8
Slide 15: GEG Adjusted EBITDA FY2019
GEG Adjusted EBITDA FY2019 Group Adjusted EBITDA decreased 2% YoY to $16.5 billion GEG Adjusted EBITDA (HK$’m) $16,857 $16,479 Adjusted EBITDA YoY GEG Total (2)% $12,871 $12,641 Galaxy Macau™ (2)% StarWorld Macau (8)% Broadway Macau™ +22% $3,502 $3,810 $39 City Clubs +5% $32 $111 $940 $117 $1,162 $(
Slide 16: GEG FY2019 NPAS
GEG FY2019 NPAS 2019 NPAS was down 3% YoY to $13.0 billion and was flat YoY on an adjusted basis to $14.0 billion after non-recurring and other charges (in HK$'m) FY2018 FY2019 YoY% Net Revenue $ 55,211 $ 51,902 -6% Adjusted EBITDA $ 16,857 $ 16,479 -2% Net Profit attributable to shareholders (NPAS)
Slide 17: GEG Special Dividends
GEG Special Dividends Today, GEG announced another special dividend of $0.45 per share to be paid on or about 24 April 2020 • The Group paid two special dividends of $0.45 per share in April 2019 and $0.46 per share in October 2019, respectively • Today, the Board is pleased to announce another spec
Slide 18: Cash and Debt Update
Cash and Debt Update Healthy Balance Sheet • As at 31 December 2019, cash and liquid investments were $52.3 billion and net cash was $51.7 billion • As at 31 December 2019, debt was $0.6 billion Cash* & Net Cash* on Hand (HK$ billion) * Include liquid investment $50.4 $52.3 $51.7 $49.3 $49.2 $45.8 $
Slide 19: Q4 2019 Results
Q4 2019 Results February 2020 19
Slide 20: GEG Revenue Q4 2019
GEG Revenue Q4 2019 Group Net Revenue in Q4 2019 decreased 8% YoY and grew 2% QoQ to $13.0 billion GEG Net Revenue (HK$’m) YoY QoQ $14,158 $12,710 $12,973 GEG Total (8)% +2% Galaxy Macau™ (10)% 0% $10,361 $9,315 $9,336 StarWorld Macau (11)% +5% $2,973 Broadway Macau™ +7% +9% $2,521 $2,653 $144 $141
Slide 21: GEG Adjusted EBITDA Q4 2019
GEG Adjusted EBITDA Q4 2019 Group Adjusted EBITDA in Q4 2019 decreased 6% YoY and 1% QoQ to $4.1 billion • Played lucky which increased EBITDA by approx. $180 million • Normalized EBITDA decreased 9% YoY and 1% QoQ to $3.9 billion GEG Adjusted EBITDA (HK$’m) YoY QoQ $4,333 $4,112 $4,052 GEG Total (6
Slide 22: Galaxy Macau
Galaxy Macau February 2020 22
Slide 23: Galaxy Macau Q4 2019
Galaxy Macau Q4 2019 Galaxy Macau™ Q4 2019 Adjusted EBITDA decreased 6% YoY and grew 1% QoQ to $3.2 billion Galaxy Macau YoY QoQ Total Gross Revenue (14)% (1)% Net Revenue of $9.3 billion was down 10% YoY and was flat QoQ (10)% 0% Total Net Revenue • VIP win decreased 30% YoY and 4% QoQ to $4.6 bi
Slide 24: StarWorld Macau
StarWorld Macau February 2020 24
Slide 25: StarWorld Macau Q4 2019
StarWorld Macau Q4 2019 StarWorld Macau Q4 2019 Adjusted EBITDA decreased 12% YoY and 6% QoQ to $782 million StarWorld Macau YoY QoQ Total Gross Revenue (15)% +9% Net Revenue of $2.7 billion decreased 11% YoY and grew 5% (11)% +5% Total Net Revenue QoQ Adjusted EBITDA (12)% (6)% • VIP win decreased
Slide 26: Broadway Macau
Broadway Macau™ February 2020 26
Slide 27: Broadway Macau Q4 2019
Broadway Macau™ Q4 2019 Broadway Macau™ Q4 2019 Adjusted EBITDA of $16 million, versus $8 million in Q4 2018 Broadway Macau™ YoY QoQ Total Gross Revenue +5% +8% Net Revenue of $154 million, versus $144 million in prior +7% +9% Total Net Revenue year and $141 million in Q3 2019 Adjusted EBITDA +100%
Slide 28: City Clubs Q4 2019
City Clubs Q4 2019 City Clubs Q4 2019 Adjusted EBITDA decreased 3% YoY and 15% QoQ to $28 million City Clubs Adjusted EBITDA (HK$’m) $33 $29 $28 2018 Q4 2019 Q3 2019 Q4 February 2020 28
Slide 29: Construction Materials Q4 2019
Construction Materials Q4 2019 Q4 2019 Adjusted EBITDA grew 35% YoY and decreased 14% QoQ to $277 million Nan Gang Slag Plant Construction Materials Adjusted EBITDA (HK$’m) $321 $277 $205 2018 Q4 2019 Q3 2019 Q4 February 2020 29
Slide 30: Selected Major Awards in 2019
Selected Major Awards in 2019 Award Presenter Gaming Operator of the Year Australia & Asia 12th International Gaming Awards Overall Most Outstanding Company in Hong Kong Asiamoney Most Outstanding Company in Hong Kong – Casinos & Gaming Sector 3 Years IR Awards Winning Company Hong Kong Investor Rel
Slide 31: Selected Major Awards in 2019
Selected Major Awards in 2019 Award Presenter Asia’s Best Catering Service Hotel Supreme Award The 19th Golden Horse Awards of China TOP 10 City-Nova Hotels of China The 14th China Hotel Starlight Awards StarWorld Macau 2019 Luxury Casino Hotel Global Winner World Luxury Hotel Awards The Michelin Gu
Slide 32: GEG Development Update
GEG Development Update Cotai - The Next Chapter • GEG is uniquely positioned for long term growth • Our development works for Phases 3 & 4 include approximately 4,000 hotel rooms and villas, including family and premium high end rooms, 400,000 square feet of MICE space, a 500,000 square feet 16,000-
Slide 33: GEG Development Update
GEG Development Update Galaxy Macau™ and StarWorld Macau • Almost completed the previously announced $1.5 billion property enhancement program in both Galaxy Macau™ and StarWorld Macau • We have identified and are reviewing additional enhancement opportunities Hengqin • We continue to make progress
Slide 34: Macau Outlook
Macau Outlook • Short-term We expect Macau may continue to experience geo-political and economic challenges that may have an impact on consumer confidence in 2020. At this point in time we cannot determine the duration of the coronavirus and therefore we are not yet able to quantify the full financi
Slide 35: Summary
Summary Positioned for Growth Corporate • FY2019 Net Revenue of $51.9 billion, down 6% YoY and Adjusted EBITDA of $16.5 billion, down 2% YoY • Q4 2019 Adjusted EBITDA of $4.1 billion, down 6% YoY • FY2019 NPAS of $13.0 billion, down 3% YoY • Paid two special dividends in 2019: $0.45 per share in Apr
Slide 36: 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 37: Q4 and Annual Results for the period end December 31, 2019
Q4 and Annual Results for the period end December 31, 2019 27 February, 2020
Galaxy Entertainment Group — FY2019 Earnings Presentation on 6ix