Genting Malaysia Bhd. · MYX:GENM
Genting Malaysia Bhd — CLSA Investors' Forum 2010 - Hong Kong
35 slides from Genting Malaysia Bhd's conference presentation, September 2010
Slide 1: Corporate Presentation
Corporate Presentation CLSA IF2010 - HK September 2010
Slide 2: Our Vision
Our Vision: To be the leading Leisu re, Hospitality « Entertainment Corporation in the world any) Revert tertel GENTING ce N TNS MALAYSIA
Slide 3: Agenda
Agenda ♠ Introduction ♥ Financial Highlights ♣ Looking Ahead ♦ International Expansion ♠ Q&A
Slide 4: Introduction
Introduction | | \ any) Revert tertel GENTING GENTING MALAYSIA
Slide 5: Overview
Overview • Asia’s leading leisure & hospitality company • Market capitalisation - RM17 billion (US$5.5 billion) • 10,000 rooms at the Genting Highlands Resort • Over 13,000 employees • Over 19 million visitors in 2009
Slide 6: Snapshot of GENM
Snapshot of GENM Share Price and Volume Traded Average Volume Traded Daily Past 1 month 9,060,000 Past 3 months 7,944,158 Past 6 months 7,494,119 Currently the 8th largest gaming company Source: Bloomberg as at 2 September 2010 6
Slide 7: Corporate Structure – Leisure & Hospitality
Corporate Structure – Leisure & Hospitality Genting Berhad 49.35% Genting Malaysia Berhad (Listed on Bursa Malaysia) 18.44% Genting Hong Kong
Slide 8: Global Peer Comparison
Global Peer Comparison EBITDA (US$) by Property in 2009 Source: Respective annual reports *Exchange rates as at 31st December 2009 … world’s largest gaming property
Slide 9: Member of the Genting Group Global Network
Member of the Genting Group Global Network PRESENCE AND ACCESSIBILITY Sales and marketing Office • 11 Major countries Casino Network • Resorts World Manila • Resorts World Sentosa • Genting Hong Kong • Genting UK … extensive coverage
Slide 10: Financial Highlights
“iments Highlights
Slide 11: Financial Performance at a Glance
Financial Performance at a Glance In RM million 1H 10 1H 09 % Revenue 2,572 2,380 8 Revenue ↑ 8% due to: EBITDA 1,027 933 10 • Overall higher volume of business; and EBITDA Margin (%) 40 40 • Better luck factor from premium players Net Profit 578 606 (5) business EBITDA Margin EPS (sen) 10.1 10.6 (5
Slide 12: Strong Growth in Revenue and EBITDA
Strong Growth in Revenue and EBITDA • Revenue growth : 5-year CAGR of 15% • EBITDA growth : 5-year CAGR of 16% • Positive contributions from major divisions REVENUE (RM ‘m) EBITDA (RM ‘m) & EBITDA MARGIN … consistent strong growth
Slide 13: Visitors & Revenue
Visitors & Revenue • Visitors growth : 5-year CAGR of 3% • Revenue growth : 5-year CAGR of 15% • Increase in average spent per visitor VISITORS (million) REVENUE (RM ‘m) … revenue growth faster than visitors 13
Slide 14: Entrenched Domestic Position
Entrenched Domestic Position • Day trippers (mostly locals) - in excess of 70% of total visitors to RWG • Remaining visitors are hotel guests (majority Malaysians) VISITORS (million) HOTEL GUEST NATIONALITY ‘09 … domestic mass support remains resilient 14
Slide 15: Consistent High Occupancy Rates
Consistent High Occupancy Rates ROOM STATISTICS • Six hotels at GHR with 10,000 rooms • Average hotel occupancy of 92% in 2009 (2008: 90%) • WorldCardTM members takes up more than 56% of room occupancy • Bus Program underpinned weekday occupancy Avg Room 89 76 77 72 78 75 Rate (RM) … driven by yield
Slide 16: Gaming Breakdown
Gaming Breakdown BREAKDOWN OF GAMING REVENUE Mass • 3 million WorldCardTM members • Strong domestic support • Competitive room rates and F&B VIP • Premium Member privileges • Competitive marketing and high level of service delivery
Slide 17: Competition – Singapore's New IRs
Competition – Singapore’s New IRs Impact on Mitigating Advantages • A strong 65% revenue mix for mass market business • Locals form bulk of our 19m+ visitors Mass • Different price points Market • Competitive room rates, F&B and Theme Park prices … … providing providing great great value value to to
Slide 18: Looking Ahead
Looking Ahead Gp) Rect werel GENTING GENTING MALAYSIA
Slide 19: Capital Management Strategy
Capital Management Strategy Net Div per Share (sen) Share Buy Back • Initiated since July 2007 • To date, bought back 242.7m shares for RM815m • 4.11% of total paid up capital Dividend • Annual dividend CAGR of 12% • Dividend payout ratio (over adjusted earnings) of 22% • 2010 Interim dividend incre
Slide 20: Prospects and Focus
Prospects and Focus • Prospects: Cautiously Optimistic Local Market • Continue to focus on: • Membership marketing • Customer retention • Yield management International Market • US • UK
Slide 21: Future Expansion
Future Expansion Resorts World Genting • Continue to upgrade facilities and infrastructure • No new room capacity envisaged at this stage Other Opportunities • US • Middle East (Egypt) • UK – Newham (East London) & Birmingham (West Midlands) 21
Slide 22: International Expansion
International Expansion 22
Slide 23: International Expansion
International Expansion Expansion overseas Genting UK and grow earnings and revenue base • Opportunity to expand into the UK, EU and The Middle East • Genting UK’s existing infrastructure and Access to regulated growing markets leadership position are major advantages • An opportunistic move in view
Slide 24: Overview of Resorts World New York
Overview of Resorts World New York 24
Slide 25: New York Racino Industry
New York Racino Industry • Gaming market size ~ US$ 1 billion • There are currently 8 Racinos in New York. 1. Empire City (Yonkers) 5. Fairgrounds Gaming 2. Saratoga Gaming 6. Tioga Downs Gaming 3. Finger Lakes Gaming 7. Vernon Downs Gaming 4. Monticello Gaming 8. Batavia Downs Gaming Vernon Downs B
Slide 26: Overview - Aqueduct Racetrack
Overview - Aqueduct Racetrack • Project cost estimated US$500 million inclusive upfront licensing fee of US$380 million • Occupies 210 acres in South Ozone Park in the Borough of Queens, New York • State Legislature approved 30 years license to operate 4,500 Video Lottery Terminals (VLT) • Project i
Slide 27: Strategic Location of Aqueduct Racetrack
Strategic Location of Aqueduct Racetrack Strategically located, with two subway stops on the New York Subway Aqueduct 27
Slide 28: Resorts World New York
Resorts World New York 1: Grand Entrance with covered entry way, three-storey 5: 200-seat high-end Chinese restaurant atrium and water show 6: Sports bar restaurant and lounge, 280-person seating 2: 93,000 sq ft casino on 1st floor; 42,500 sq ft casino on 2nd capacity floor 7: Skyway pedestrian brid
Slide 29: Overview of Genting UK
Overview of Genting UK any) Revert tertel Oh) GENTING ce N TNS MATAYSIA
Slide 30: Genting UK Overview
Genting UK Overview • Agreement with Genting Singapore to acquire its casino operations in the UK • Purchase consideration of £340 million @ enterprise value of £426 million • Largest casino operator in UK in terms of number of casinos (46 casinos) • Genting UK Group’s performance: 1H10 Revenue - £
Slide 31: Genting UK Overview (cont')
Genting UK Overview (cont’) • Extensive network of casinos offering full range of slots and table games – Operates 41 casino clubs within the provinces under 3 key brands • Circus Casino • Maxims Casino • Mint Casino – Operates 5 casino clubs in London • Maxims Casino Club • Crockfords • Colony Club
Slide 32: UK Gaming Landscape
UK Gaming Landscape Market share 32
Slide 33: Investment Highlights
Investment Highlights 1 Leading integrated leisure & hospitality operator in the region 2 Continuous growth and stable financial profile 3 Good, stable cash generation from resilient business model 4 Experienced management to face competition 5 Expansion into US and UK Genting Highlands Resort 6th i
Slide 34: Accolades
Accolades Genting Highlands Resort now stands proudly as the World’s leading integrated leisure and entertainment resort. It has received numerous awards of excellence in recognition of the high standard of its facilities and services. The following are major awards received in 2009 & 2010: Asia’s L
Slide 35: Thank You
Thank You Visit us at www.gentingmalaysia.com Disclaimer Some of the statements made in this presentation which are not statements of historical facts are forward-looking statements and are based on the current beliefs, assumptions, expectations, estimates, objectives and projections of the director
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