Shangri-La Asia Limited · HKEX:69
Shangri-La Asia — 1H 2021 Earnings Presentation
21 slides from Shangri-La Asia's earnings presentation, Aug 27, 2021
Slide 1: Shangri-La Asia Ltd 2021 Interim Results
Shangri-La Asia Ltd 2021 Interim Results 27 August2021
Slide 2: 1H 2021 Results Highlights
1H 2021 Results Highlights Results highlights – 1H 2021 vs 1H 2020 USDmn 1H 21 1H 20 YoY (USDmn) YoY (%) Consolidated revenue 545.8 453.5 92.3 20.4% Eff. share of revenue 798.2 622.4 175.8 28.2% Eff. share of EBITDA 199.6 27.8 171.8 618.0% Operating PATMI (118.1) (255.4) 137.3 53.8% Total PATMI (59.
Slide 3: 1H 2021 Business Update
1H 2021 Business Update Events of the year • Refreshed brand logo for Shangri-La Hotels and Resorts as part of our 50th anniversary celebrations • Launch of Shangri-La’s family experience brand Fam.ilyTM to target family leisure business • Launch of lucky draw in Hong Kong to support the city’s COVI
Slide 4: 1H 2021 Business Update (Continued)
1H 2021 Business Update (Continued) Strong balance sheet • Group cash at USD743.4mn as at 30 June 2021, decrease of USD247.5mn from beginning of year • Reduction of cash mainly due to debt repayment of USD131.6mn, operating cash burn of USD129.7mn and capex of USD49.2mn, partially offset by repaymen
Slide 5: Financial Highlights – 1H 2021 vs 1H 2020
Financial Highlights – 1H 2021 vs 1H 2020 • Year-on-year growth mainly driven by improvement of hotels business in Mainland China • Investment Properties continued to provide stable base for the Group • Total PATMI was also helped by fair value net gain mainly from associate Investment Properties In
Slide 6: Group total hotel on recovery trend, with 1H effective revenue at 49% of 1H 2019 levels
Group total hotel on recovery trend, with 1H 21 effective revenue at 49% of 1H 2019 levels, 31% above 1H 2020 Mainland China hotels effective share of revenue was 76% of 1H 19 levels, 111% above 1H 20 levels 6
Slide 7: Effective Share of EBITDA by Segment – 1H 2021 vs 1H 2020
Effective Share of EBITDA by Segment – 1H 2021 vs 1H 2020 (1) In USDmn Effective Share of EBITDA Var% 1H 2021 vs 1H 2020 27.8 199.6 618.0% Hotel Properties – increased USD143.3mn to USD49.1mn 16.2 100.0% • Turnaround led by Mainland China, increased by USD91.3mn • UK increased USD14.1mn, Hong Kong U
Slide 8: Corporate Finance and Treasury update
Corporate Finance and Treasury update
Slide 9: Cash, Debt and Gearing Summary (as of Jun 2021)
Cash, Debt and Gearing Summary (as of 30 Jun 2021) • Debt weighted average term reduced due to shorter tenor loans • Committed Undrawn Facilities remained stable, acting as insurance Gross Debt * Weighted Term : 3.95 years (4.03 @ Dec 20) $5.6bn $158mnCash & cash equivalent 5,561 Net Debt * $743mn 1
Slide 10: 1H 2021 Cash Flow
1H 2021 Cash Flow • Operations cash burn at USD129.7mn • Reduction in debt to help lower future interest expenses -129.7 -48.1 -81.8 0.2 -49.2 75.6 USD mn -207.2 5.5 57.5 990.9 680.4 743.4 Cash at Cash from Net Interest Net dividends CAPEX* Net proceeds from Net change in Net loan and Others Cash at
Slide 11: Prospects
Prospects
Slide 12: 1H 2021 set the stage for a recovery…
1H 2021 set the stage for a recovery… • Global vaccination launch throughout the period provided hope for resumption of normality, where countries with high vaccination rates began planning for pathway to relaxation of travel restrictions • Early signs of reopening are encouraging, with decent summe
Slide 13: … However latest Delta Variant once again creating uncertainties
… However latest Delta Variant once again creating uncertainties • Uncertainties worsened again as the recent delta variant has shown to be more contagious • This has led to a tighter lockdown and restrictions in Mainland China, impacting occupancy beginning August 80% 70% Mainland China Hotels Occu
Slide 14: Appendix
Appendix SHANGRI-LA GROUP 14
Slide 15: Owned Hotels Under Development
Owned Hotels Under Development Property Group’s Equity Projected Name (# of keys) Interest Opening Kyoto Subsidiaries Zhengzhou Hongqiao Airport • Shangri-La Hotel, Kyoto 100%* Q2 2024 Operating lease agreement Kunming • Shangri-La Hotel, Hongqiao Airport Q3 2024 JV with Kerry Properties Limited • J
Slide 16: Managed Hotels Under Development
Managed Hotels Under Development • Shangri-La Hotel, Qian Tan Beijing • Shangri-La Hotel, Nanning Shanghai • Shangri-La Hotel, Shougang Park, BJ Hangzhou Nanning Qianhai • Shangri-La Hotel, Jeddah Shenzhen Bay • Shangri-La Phnom Penh, Cambodia Phnom Penh • Jen Qianhai by Shangri-La, Shenzhen • Shang
Slide 17: Composite Projects Under Development
Composite Projects Under Development Joint Ventures with Subsidiaries Shenyang KPL (Cont’d) Tianjin • Phase II of Shangri-La Hotel, Fuzhou* • Kunming City Project* • Equity interest: 100% • Equity interest: 45% Zhengzhou • Component: Office + Retail • Component : Hotel, Commercial & • Projected open
Slide 18: 6-month profitability trends for our key markets
6-month profitability trends for our key markets Mainland China 1H 21 EBITDA lower due to COVID outbreak and tighter restrictions in first 2.5 months in 2021. 18
Slide 19: Investment Properties Fair Value Adjustment
Investment Properties Fair Value Adjustment Investment Properties fair value gain mainly from associates in Mainland China Fair value gains on investment properties (net of deferred tax) 1H 2021 1H 2020 Subsidiaries - Mainland China 4.4 (3.7) - Singapore 8.6 (6.2) - Myanmar (11.8) (5.7) - Others 0.8
Slide 20: EBITDA & eff. Share of EBITDA – 30 Jun 2021 vs 30 Jun 2020
EBITDA & eff. Share of EBITDA – 30 Jun 2021 vs 30 Jun 2020 20
Slide 21: Shangri-La Asia hotels (As at 30 June 2021)
Shangri-La Asia hotels (As at 30 June 2021) Owned/leased Managed Total Operating Hotels Under Hotels Development Hotels Rooms Rooms Rooms Owned Hotels Hotels Hotels Under Mgt (‘000) (‘000) (‘000) Hotels Contracts 73 30.7 15 4.7 88 35.4 3 7 3 1.6 - - 3 1.6 - - 7 2.8 2 0.6 9 3.4 1 2 - - 2 0.8 2 0.8 1