Lotte Tour Development Co., Ltd. · KRX:032350
Lotte Tour Development — Investor Day (December 2021)
19 slides from Lotte Tour Development's investor day presentation, Dec 10, 2021
Slide 1: Lotte Tour Development Investor Day
Lotte Tour Development Investor Day December 10th, 2021 1
Slide 2: Table of Contents
Table of Contents 1-1. Asian Casino Markets 1-2. Singapore Marina Bay Sands 2. Jeju Dream Tower 3. Dream Tower Casino 4. Grand Hyatt Jeju 5. K-Fashion Mall ‘HAN Collection’ 6. Earnings Forecast (Post COVID-19) 7-1. Operating Cash Flow (2021) 7-2. Key Business Indicators of Hotel (Dec 2021) Appendix
Slide 3: 1-1. Asian Casino Markets
1-1. Asian Casino Markets Macau and Asia’s Casino Industry Korea’s Casino Industry As China’s anti-corruption campaign (2014) Korea’s foreigner-only casino industry observed continues, Macau’s VIP players begin to visit Integrated-Resort-led growth non-Macau casino markets • Macau VIP players’ d
Slide 4: 1-2. Singapore Marina Bay Sands
1-2. Singapore Marina Bay Sands Marina Bay Sands (MBS) (Millions) Annual Visitor Arrivals to Singapore • Las Vegas Sands’ USD 5.5 billion investment in Singapore quickly 20 transformed Singapore into a tourist destination, thus bringing in 18.5 more international travelers MBS 15.6 opens 17.4 16.4
Slide 5: 2-1. Jeju Dream Tower - Overview
2-1. Jeju Dream Tower - Overview Korea’s First Downtown Integrated Resort Co-Developer • Lotte Tour Development, Greenland Group • Site Area 23,300㎡ (7,048py) Size • GFA 303,737㎡ (91,880py) Floors / Height • B6 to 38F / 169 m (Tallest Landmark in Jeju) Hotel • 1,600 Suite-size rooms • Casino Area
Slide 6: 2-2. Jeju Dream Tower - A New Landmark of Jeju
2-2. Jeju Dream Tower - A New Landmark of Jeju Korea’s First Downtown Integrated Resort Location, Location, Location - Located at Nohyung rotary, the heart of Jeju City where 5 major roads intersect - Shilla & Lotte Duty Free Shops are located 600m away from Jeju Dream Tower - Over 5,000 hotel r
Slide 7: 3-1. Dream Tower Casino - First Downtown Integrated Resort in Korea
3-1. Dream Tower Casino - First Downtown Integrated Resort in Korea Game Changer of Korean Casino Industry - Jeju Dream Tower Casino is similar size to Jeju Shinhwa World and Paradise City (KRW bn) Integrated Resort Location Revenue (M/S) Tables & Slot Machines (Opening Date) (Downtown) 1H18 2H18
Slide 8: 3-2. Dream Tower Casino - Strategic Highlights
3-2. Dream Tower Casino - Strategic Highlights A must-visit-destination for Macau Junkets’ VIP players as they seek to visit non-Macau casinos • Equipped with 25 tables in VIP zones, Dream Tower Casino will welcome Chinese VIP players seeking for non-Macau casinos (For players based in eastern Chi
Slide 9: 3-3. Dream Tower Casino - Korea's Largest Integrated Resort
3-3. Dream Tower Casino - Korea’s Largest Integrated Resort Unrivalled comp. advantage to attract players & Maximized profitability backed with cost efficiency • Key drivers of Macau casinos’ growth are large-scale complimentary hotel rooms and F&Bs, as well as facilities of Integrated Resorts to
Slide 10: 3-4. Dream Tower Casino - Loyalty Club Membership
3-4. Dream Tower Casino - Loyalty Club Membership Dream Tower Casino’s Loyalty Club Membership - 'Lotte Tour Club' • ‘Lotte Tour Club’ is the first casino loyalty club membership introduced in Korea (Mobile application also available) • Composed with 4 membership tiers – gold, silver, black and di
Slide 11: 4-1. Grand Hyatt Jeju - Asia's Largest Grand Hyatt Hotel
4-1. Grand Hyatt Jeju - Asia’s Largest Grand Hyatt Hotel Asia’s largest, and the World’s 2nd largest Grand Hyatt Hotel • Compared to Jeju Shilla Hotel and Lotte Hotel Jeju with 400+ rooms and 2 MICE meeting rooms, Grand Hyatt Jeju offers incomparable 1,600 suite-size rooms (from 65㎡ to 260㎡) and 1
Slide 12: 4-2. Grand Hyatt Jeju - Korea's 'Living with COVID-19'
4-2. Grand Hyatt Jeju - Korea’s ‘Living with COVID-19’ Hotel business will benefit from below favorable environments for operation: • Operational restrictions on hotel rooms are lifted as Korea initiated ‘Living with COVID-19’ from November 2021 • Full operation of Grand Hyatt Jeju’s twin towers (
Slide 13: 4-3. Grand Hyatt Jeju - Profitability
4-3. Grand Hyatt Jeju - Profitability Hotel business turned around from loss to profit in effect of ‘Living with COVID-19’ • October : Recorded operating profit for the first time since the grand opening, as pandemic-fueled demand for traveling remained strong and assisted revenue growth (KRW 8bn
Slide 14: 5. K-Fashion Mall 'HAN Collection'
5. K-Fashion Mall ‘HAN Collection’ First K-Fashion Mall with Top 200 K-Fashion Designers • ‘HAN Collection’ is the first K-Fashion Mall featuring the newest trends led by Korea’s top 200 designers, including but not limited to namesake labels as YCH and Jaebaek Couture that are beloved by Men's Ca
Slide 15: 6. Earnings Forecast (Post COVID-19)
6. Earnings Forecast (Post COVID-19) Casino : Annual Revenue of KRW 396.2bn to 1,196.9bn (KRW) GKL & Paradise Jeju Shinhwa World Galaxy Macau Jeju Dream Tower (Annual average of 2013-2018) (Average of 1H 2018) (Average of 2018) Casino * Win/Unit/Day Revenue Win/Unit/Day Revenue Win/Unit/Day Revenu
Slide 16: 7-1. Operating Cash Flow (2021)
7-1. Operating Cash Flow (1) (2021) Operating Cash Flow (OCF) of Lotte Tour Development in 2021 • Hotel’s operating cash flow in October turned around from negative to positive, and secured positive OCF in November and December • Corporate earnings expected to turn into profit if hotel business ma
Slide 17: 7-2. Key Business Indicators of Hotel in December 2021
7-2. Key Business Indicators of Hotel in December 2021 Average Daily Rate and Occupancy Rate in December 2021 (KRW, No. of Rooms) Date Dec 1 Dec 2 Dec 3 Dec 4 Dec 5 Dec 6 Dec 7 Dec 8 Average Daily Rate 256,806 279,359 286,940 284,465 263,820 262,761 264,007 263,256 Occupancy Rate 59.2% 45.0% 46.2%
Slide 18: Appendix. Financial Summary of 3Q 2021 (Consolidated)
Appendix. Financial Summary of 3Q 2021 (Consolidated) Operating revenue in 3Q 2021 increased to KRW 30.0bn (QoQ +22%, YoY +2357.9%) Operating loss recorded KRW 33.7bn (KRW 29.3bn excluding one-off expenses of KRW 4.4bn (1)) Net loss decreased to KRW 52.4bn in 3Q as both operating loss and fina
Slide 19: Appendix. Highlights of 3Q 2021's Operating Expenses (Consolidated)
Appendix. Highlights of 3Q 2021’s Operating Expenses (Consolidated) (KRW bn) 3Q 2021 2Q 2021 1Q 2021 3Q YTD Operating Expenses 63.7 54.1 50.0 167.9 Labor Cost & Related 19.2 16.5 16.8 52.5 (%) 30.1% 30.5% 33.5% 31.3% Depreciation 17.2 16.6 16.3 50.0 (%) 26.9% 30.6% 32.5% 29.8% Commissions & Fees 8.6
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