Shangri-la Asia Limited · HKEX:69

Shangri-la Asia — FY2020 Earnings Presentation

19 slides from Shangri-la Asia's earnings presentation, Mar 26, 2021

  1. Slide 1: Shangri-La Asia Ltd 2020 Annual Results

    Shangri-La Asia Ltd 2020 Annual Results 26 March 2021

  2. Slide 2: FY2020 Results Highlights

    FY2020 Results Highlights Results highlights – FY2020 vs FY2019 USDmn FY20 FY19 YoY (USDmn) YoY (%) Consolidated Revenue 1,033.4 2,431.2 (1,397.8) -57.5% Effective share of EBITDA 181.6 864.9 (683.3) -79.0% Operating PATMI (432.1) 113.8 (545.9) n.m. Total PATMI (460.2) 152.5 (612.7) n.m. Proposed no

  3. Slide 3: FY2020 Business update

    FY2020 Business update Mitigation actions • Launched “Shangri-La Cares”, our health and safety commitment, to ensure safety of our guests and staff • Streamlined organisation structure and implemented cost control measures • Maximised cash conservation, reduced capex plans and put on hold all new pr

  4. Slide 4: FY2020 Business update

    FY2020 Business update Major events of the year Hotels New Opening • Shangri-La Zhoushan (January 2020) • Shangri-La Putian (December 2020) New hotels • Signed management agreement with Kerry Properties Limited for Jen Hangzhou by Shangri-La (Sept 2020) • Signed management agreement with Shenzhen Me

  5. Slide 5: Financial Highlights – FY20 Actual vs FY19 Actual

    Financial Highlights – FY20 Actual vs FY19 Actual In USD million FY20 FY19 FY20 v FY19 % Change 2H 20 1H 20 2H 20 v 1H 20 % Change Revenue 1,033.4 2,431.2 (1,397.8) (57.5%) 579.9 453.5 126.4 27.9% Effective share of Revenue (Note 1) 1,496.3 2,916.0 (1,419.7) (48.7%) 878.5 617.8 260.7 42.2% EBITDA (8

  6. Slide 6: Effective Share of EBITDA by Segment – FY20 Actual vs FY19 Actual

    Effective Share of EBITDA by Segment – FY20 Actual vs FY19 Actual In USD million (1) Effective Share of EBITDA 2020 Actual vs 2019 Actual 864.9 V%  Hotel Properties – decreased USD614.2mn to USD(95.4)mn Property Sales • Mainland China decreased USD166.8mn 113.3 & others • Hong Kong decreased USD102

  7. Slide 7: Financial Highlights – FY2020 Non-operating items

    Financial Highlights – FY2020 Non-operating items • Fair value of subsidiary investment properties increased in 2H 20 with ramping up of Sri Lanka and Ulaanbaatar IPs, as well as commenced development of Fuzhou mixed used project • Fair value gains of associate investment properties due to resilient

  8. Slide 8: Corporate Finance and Treasury Update

    Corporate Finance and Treasury Update

  9. Slide 9: Cash, Debt and Gearing Summary (as at Dec 2020)

    Cash, Debt and Gearing Summary (as at 31 Dec 2020) • Weighted average term decreased by 0.15 years due to shorter tenor loans • Cash & cash equivalent and committed undrawn facilities remained stable at ~USD2bn Gross Debt * 5,719 $5.7bn $0.5bn Cash & cash equivalent Weighted Average Term : 4.06 year

  10. Slide 10: Cashflow 2020

    Cashflow 2020 Operations cash burn at USD286mn Reduced CAPEX drastically to USD136mn 1,200 -286.2 35.9 1,000 -167.7 205.2 USD mn 800 -159.4 40.9 -30.0 -135.7 184.8 600 1,016.7 990.9 400 200 - Cash at Cash from Net Interest Net Dividend One-off CAPEX Net proceeds Net change in Others Cash at 1/1/2020

  11. Slide 11: COVID-19 Update

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  12. Slide 12: 2021 Outlook Summary

    2021 Outlook Summary Outlook • Domestic consumption driven by: China Consumption • Pent up demand from savings rate spike and economic recovery robust • Dual Circulation policy • Consumption backflow from curtailed outbound travel Premiumization to • Affluent household income resilient continue • Pr

  13. Slide 13: Mainland China recovery sustained

    Mainland China recovery sustained • Mainland China hotel occupancy bottomed in February 2020 • Mainland China as a region achieved positive EBITDA since June, supported by domestic consumption • Chinese New year F&B sales recovered to 2019 levels. • Chinese New Year Goodies sales have exceeded both

  14. Slide 14: Strategy looking ahead

    Strategy looking ahead Two broad strategies: 1) Drive topline (China) • continue to drive topline leveraging on China consumption growth 2) Cost and cash management (Non-China) • Extended voluntary wage reduction of senior staff and directors by up to 30% • Apply voluntary no-pay leave for others, h

  15. Slide 15: Appendix

    Appendix 15

  16. Slide 16: Owned Hotels Under Development

    Owned Hotels Under Development Property Group’s Equity Projected Name (# of keys) Interest Opening Subsidiaries Kyoto Zhengzhou Hongqiao • Shangri-La Hotel, Kyoto (80-100) 100% 2024 Airport Operating lease agreement Kunming • Shangri-La Hotel, Hongqiao Airport (610) 2024 JV with Kerry Properties Lim

  17. Slide 17: Managed Hotels Under Development (# of keys)

    Managed Hotels Under Development (# of keys) • Shangri-La Hotel, Qian Tan (585) Beijing • Shangri-La Hotel, Nanning, (320) Shanghai Hangzhou • Shangri-La Hotel, Shougang Park, BJ (282) Nanning • Shangri-La Hotel, Jeddah (217) Qianhai Shenzhen Bay • Shangri-La Phnom Penh, Cambodia (303) Phnom Penh •

  18. Slide 18: Composite Projects Under Development

    Composite Projects Under Development Joint Ventures with Subsidiaries Shenyang KPL (Cont’d) • Phase II of Shangri-La Hotel, Fuzhou* • Kunming City Project* Zhengzhou • Equity interest: 100% • Equity interest: 45% • Component: Office + Retail • Component : Hotel, Commercial & • Projected opening: 202

  19. Slide 19: EBITDA & eff. Share of EBITDA – 31 Dec 2020 vs 31 Dec 2019

    EBITDA & eff. Share of EBITDA – 31 Dec 2020 vs 31 Dec 2019 19

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