Galaxy Entertainment Group Limited · HKEX:27
Galaxy Entertainment — Q2 2020 Earnings Presentation
40 slides from Galaxy Entertainment's earnings presentation, Aug 13, 2020
Slide 1: Q2 & Interim Results 2020
Q2 & Interim Results 2020 13 August, 2020
Slide 2: Letter from the Chairman of GEG
Letter from the Chairman of GEG I would like to take this opportunity to update you on the status of GEG during the period of COVID-19. Q2 2020 continued to be a difficult period for the community and businesses globally including Macau and GEG. First and foremost, the Macau government continues to
Slide 3: Letter from the Chairman of GEG
Letter from the Chairman of GEG I wish to assure you that the management and staff have been working diligently in regards to health, safety and hygiene so that our resorts are operationally ready as travel restrictions ease. These included the introduction of a number of policies and procedures to
Slide 4: Prevention Efforts against COVID-19
Prevention Efforts against COVID-19 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 COVID-19 • Supporting our staff and guests • Increased the frequency of cleaning and sanitation of our resorts • St
Slide 5: Photo Collage of GEG Prevention Efforts against COVID-19
Photo Collage of GEG Prevention Efforts against COVID-19 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 COVID-19 August 2020 5
Slide 6: Photo Collage of GEG Prevention Efforts against COVID-19
Photo Collage of GEG Prevention Efforts against COVID-19 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 COVID-19 August 2020 6
Slide 7: Photo Collage of GEG Prevention Efforts against COVID-19
Photo Collage of GEG Prevention Efforts against COVID-19 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 COVID-19 August 2020 7
Slide 8: Prevention Efforts against COVID-19
Prevention Efforts against COVID-19 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 COVID-19 • Cash donation of MOP100 million to assist in the fight against COVID-19 • Donation of MOP25 million to H
Slide 9: Prevention Efforts against COVID-19
Prevention Efforts against COVID-19 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 COVID-19 • Additionally, we subscribed the HKD100 million SMEs themed COVID-19 Impact Alleviation Social Bonds issu
Slide 10: Executive Summary
Executive Summary GEG: Well Capitalized to Weather the COVID-19 Storm • Strong and liquid balance sheet with cash of $49.8 billion and net cash of $43.6 billion Q2 2020 • Q2 Group Net Revenue of $1.2 billion, down 91% year-on-year and down 77% quarter-on-quarter • Q2 Group Adjusted EBITDA of $(1.4)
Slide 11: Executive Summary
Executive Summary Galaxy Macau™: Adjusting Operations to the Current Business Environment Q2 2020 • Q2 Net Revenue of $0.3 billion, down 97% year-on-year and down 92% quarter-on-quarter • Q2 Adjusted EBITDA of $(1.2) billion, Vs $3.2 billion in Q2 2019 and $0.3 billion in Q1 2020 • Played lucky in Q
Slide 12: Executive Summary
Executive Summary StarWorld Macau: Adjusting Operations to the Current Business Environment Q2 2020 • Q2 Net Revenue of $0.1 billion, down 97% year-on-year and down 92% quarter-on-quarter • Q2 Adjusted EBITDA of $(0.3) billion, Vs $0.9 billion in Q2 2019 and $0.1 billion in Q1 2020 • Played unlucky
Slide 13: Executive Summary
Executive Summary Broadway Macau™: A Unique Family Friendly Resort, Strongly Supported By Macau SMEs Q2 2020 • Q2 Net Revenue of $12 million Vs $147 million in Q2 2019 and $53 million in Q1 2020 • Q2 Adjusted EBITDA of $(52) million Vs $6 million in Q2 2019 and $(45) million in Q1 2020 • There was n
Slide 14: Executive Summary
Executive Summary Construction Materials Division: Strong Performance Q2 2020 • The performance of CMD has been very strong in Q2 2020 with EBITDA of $0.4 billion, up 7% year-on-year and up 228% quarter-on-quarter • Due to pent-up demand for construction materials in both Hong Kong and Mainland afte
Slide 15: Executive Summary
Executive Summary Balance Sheet: Maintain a Healthy and Liquid Balance Sheet • Cash and liquid investments were $49.8 billion and net cash was $43.6 billion as at 30 June 2020 • Debt of $6.2 billion as at 30 June 2020 primarily associated with treasury yield management program GEG Special Dividends
Slide 16: Executive Summary
Executive Summary Development Update: Continue to Pursue Development Opportunities • We continue to make ongoing progressive enhancements to our resorts to ensure that they remain competitive and appealing to our guests • Cotai Phases 3 & 4 – Continue with development works for Phases 3 & 4, with a
Slide 17: Interim Results 2020
Interim Results 2020 August 2020 17
Slide 18: GEG Revenue Summary 1H 2020
GEG Revenue Summary 1H 2020 Group Net Revenue in the first half of 2020 was down 76% YoY to $6.2 billion GEG Gross Revenue (HK$’m) GEG Net Revenue (HK$’m) $33,566 $31,960 $26,219 $25,683 $24,090 $23,241 $18,790 $18,651 $7,616 $6,223 $7,773 $6,846 $4,942 $5,743 $5,174 $3,835 $315 $310 $1,366 $298 $29
Slide 19: GEG Revenue Summary 1H 2020
GEG Revenue Summary 1H 2020 Group Net Revenue in the first half of 2020 was down 76% YoY to $6.2 billion Gross Net Gross Net YoY Revenue Revenue HoH Revenue Revenue GEG Total (77)% (76)% GEG Total (76)% (76)% Galaxy Macau™ (79)% (80)% Galaxy Macau™ (79)% (79)% StarWorld (82)% (81)% StarWorld (80)% (
Slide 20: GEG Adjusted EBITDA Summary 1H 2020
GEG Adjusted EBITDA Summary 1H 2020 Group Adjusted EBITDA was $(1.1) billion in the first half of 2020, Vs $8.3 billion in 1H 2019 GEG Adjusted EBITDA (HK$’m) $8,315 $8,164 YoY HoH GEG Total (113)% (113)% $6,258 $6,383 Galaxy Macau™ (114)% (113)% StarWorld Macau (111)% (113)% $18 (562)% (639)% $1,61
Slide 21: GEG 1H 2020 NPAS
GEG 1H 2020 NPAS 1H 2020 Net Loss Attributable to Shareholders of $2.9 billion, including $0.7 billion of non-recurring items, Vs profit of $6.7 billion in 1H 2019 (in HK$'m) 1H19 1H20 YoY Net Revenue $ 26,219 $ 6,223 -76% Adjusted EBITDA $ 8,315 $ (1,087) -113% Net Profit / (Loss) attributable to s
Slide 22: Q2 2020 Results
Q2 2020 Results August 2020 22
Slide 23: GEG Revenue Q2 2020
GEG Revenue Q2 2020 Group Net Revenue in Q2 2020 decreased 91% YoY and 77% QoQ to $1.2 billion GEG Net Revenue (HK$’m) YoY QoQ $13,174 GEG Total (91)% (77)% Galaxy Macau™ (97)% (91)% $9,526 $5,070 StarWorld Macau (97)% (92)% $311 $81 Broadway Macau™ (92)% (77)% $2,756 $3,524 $1,153 $12 $1,002 $147 $
Slide 24: GEG Adjusted EBITDA Q2 2020
GEG Adjusted EBITDA Q2 2020 Group Adjusted EBITDA in Q2 2020 was $(1.4) billion, Vs $4.3 billion in Q2 2019 and $0.3 billion in Q1 2020 • Played lucky which increased EBITDA by approx. $3 million GEG Adjusted EBITDA (HK$’m) YoY QoQ $4,332 GEG Total (132)% (584)% $3,235 Galaxy Macau™ (136)% (458)% $2
Slide 25: Galaxy Macau
TA Galaxy Galaxy Macau™ - HUE GEG August 2020 25
Slide 26: Galaxy Macau Q2 2020
Galaxy Macau Q2 2020 Galaxy Macau™ Q2 2020 Adjusted EBITDA was $(1.2) billion Vs $3.2 billion in Q2 2019 Galaxy Macau YoY QoQ Total Gross Revenue (96)% (90)% Net Revenue decreased 97% YoY and 91% QoQ to $0.3 billion (97)% (91)% Total Net Revenue • VIP win decreased 96% YoY and 87% QoQ to $0.2 bill
Slide 27: StarWorld Macau
StarWorld Macau August 2020 27
Slide 28: StarWorld Macau Q2 2020
StarWorld Macau Q2 2020 StarWorld Macau Q2 2020 Adjusted EBITDA was $(0.3) billion Vs $0.9 billion in Q2 2019 StarWorld Macau YoY QoQ Total Gross Revenue (97)% (91)% Net Revenue of $81 million decreased 97% YoY and 92% QoQ (97)% (92)% Total Net Revenue • VIP win decreased 97% YoY and 87% QoQ to $60
Slide 29: Broadway Macau
Broadway Macau™ August 2020 29
Slide 30: Broadway Macau Q2 2020
Broadway Macau™ Q2 2020 Broadway Macau™ Q2 2020 Adjusted EBITDA of $(52) million, Vs $6 million in Q2 2019 Broadway Macau™ YoY QoQ Total Gross Revenue (92)% (79)% Net Revenue of $12 million, Vs $147 million in prior year and (92)% (77)% Total Net Revenue $53 million in Q1 2020 Adjusted EBITDA (967)%
Slide 31: City Clubs Q2 2020
City Clubs Q2 2020 City Clubs Q2 2020 Adjusted EBITDA decreased 93% YoY and 88% QoQ to $2 million Adjusted EBITDA (HK$’m) $29 $16 $2 2019 Q2 2020 Q1 2020 Q2 August 2020 31
Slide 32: Construction Materials Q2 2020
Construction Materials Q2 2020 Construction Materials Q2 2020 Adjusted EBITDA increased 7% YoY and 228% QoQ to $0.4 billion Nan Gang Slag Plant Adjusted EBITDA (HK$’m) $390 $364 $119 2019 Q2 2020 Q1 2020 Q2 August 2020 32
Slide 33: Selected Awards in 1H 2020
Selected Awards in 1H 2020 Award Presenter Casino Operator of the Year Australia & Asia 13th International Gaming Awards Socially Responsible Operator (Asia / Australia) GEG The 2nd Greater China Most Influential Brand & Social Responsibility Award Entrepreneur Awards Ceremony Five-Star Hotel: Five-
Slide 34: Selected Awards in 1H 2020
Selected Awards in 1H 2020 Award Presenter 100 Top Tables 2020 - Feng Wei Ju South China Morning Post StarWorld Macau 2019-2020 China Feast Restaurant Awards by Best Chinese Restaurant- Feng Wei Ju Restaurant Review Caring Company Scheme – 15 Years Plus Caring Company Logo The Hong Kong Council of S
Slide 35: Cash and Debt Update
Cash and Debt Update Balance Sheet: Maintain a Healthy and Liquid Balance Sheet • Cash and liquid investments were $49.8 billion and net cash of $43.6 billion as at 30 June 2020 • Debt of $6.2 billion as at 30 June 2020 primarily associated with treasury yield management program • Paid the previousl
Slide 36: 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 3,500 hotel rooms, including family and premium high end rooms and villas, 400,000 square feet of MICE space, a 500,000 square feet 16,000-s
Slide 37: GEG Development Update
GEG Development Update Galaxy Macau™ and StarWorld Macau • We continue to make ongoing progressive enhancements to our resorts to ensure that they remain competitive and appealing to our guests Hengqin • We continue to make progress with our concept plan for a lifestyle resort on Hengqin that will c
Slide 38: Summary
Summary Positioned for Growth Corporate – Well Capitalized with Strong Balance Sheet • 1H Group Adjusted EBITDA of $(1.1) billion • Q2 2020 Group Adjusted EBITDA of $(1.4) billion • Paid the previously announced special dividend of $0.45 per share on 24 • GEG commenced April 2020 • Given the ongoing
Slide 39: 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 40: Q2 & Interim Results 2020
Q2 & Interim Results 2020 13 August, 2020
Galaxy Entertainment Group — Q2 2020 Earnings Presentation on 6ix