Genting Malaysia Bhd. · MYX:GENM
Genting Malaysia Bhd — CLSA Investors' Forum 2017
42 slides from Genting Malaysia Bhd's conference presentation, September 2017
Slide 1: Corporate Presentation
No. 58019-U Corporate Presentation CLSA IF2017 Hong Kong September 2017
Slide 2: Agenda
1 OVERVIEW 2 FINANCIAL HIGHLIGHTS 3 DOMESTIC OPERATIONS • RESORTS WORLD GENTING • GENTING INTEGRATED TOURISM PLAN 4 OVERSEAS OPERATIONS • UNITED KINGDOM • UNITED STATES • BAHAMAS 5 PROSPECTS AND FOCUS 2
Slide 3: Group Corporate Structure
OVERVIEW GROUP CORPORATE STRUCTURE Berhad 49.3% Malaysia US & Bahamas UK 100% 100% 100% 100% 78% 100% 100%
Slide 4: Resorts World Genting, Malaysia
RESORTS WORLD GENTING, MALAYSIA ……… Asia’s Leading Themed Resort by World Travel Awards in 2016 4
Slide 5: Genting UK & Resorts World Birmingham
GENTING UK & RESORTS WORLD BIRMINGHAM ……… One of the leading casino operators in the UK 5
Slide 6: Resorts World Casino New York City, US
RESORTS WORLD CASINO NEW YORK CITY, US ………Market leader by gaming revenue in the Northeast US region 6
Slide 7: Resorts World Bimini, Bahamas
RESORTS WORLD BIMINI, BAHAMAS ……… 750-acre luxury beachfront casino resort 7
Slide 8: Group's Key Properties
OVERVIEW GROUP’S KEY PROPERTIES Resorts World Genting (RWG) Resorts World Casino New York City A world-class integrated destination resort ~8.2m visitors in FY2016 ~20.2m visitors in FY2016 Equipped with ~5,500 video gaming machines (“VGM”) and other leisure ~10,300 rooms facilities ~13,
Slide 9: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 10: Financial Snapshot – 2Q17
OVERVIEW FINANCIAL SNAPSHOT – 2Q17 US & % In RM’mil Malaysia UK 2Q17 2Q16 Bahamas Change Revenue 1,471 425 396 2,292 2,235 ↑3% 64% 19% 17% 100% Adjusted EBITDA 397 53 85 535 662 ↓19% 74% 10% 16% 100% Adjusted EBITDA Margin 27% 12% 21% 23% 30% PBT 292 6 (51) 247 512 ↓52% Tax (73) (47) ↑56% Net Profit
Slide 11: Financial Snapshot – 1H17
OVERVIEW FINANCIAL SNAPSHOT – 1H17 US & % In RM’mil Malaysia UK 1H17 1H16 Bahamas Change Revenue 2,833 894 788 4,515 4,449 ↑1% 63% 20% 17% 100% Adjusted EBITDA 845 133 122 1,100 1,107 ↓1% 77% 12% 11% 100% Adjusted EBITDA Margin 30% 15% 15% 24% 25% PBT 642 45 (96) 591 774 ↓24% Tax (122) (165) ↓26% Ne
Slide 12: Dividend Trend
OVERVIEW DIVIDEND TREND 20 16.50* 16 7.30 Net dividend per share (sen) 12 9.20 8 6.60 7.13 6.50 7.10 6.45 4 4.00 3.00 - FY11 FY12 FY13 FY14 FY15 FY16 1H16 1H17 *Includes a special dividend of 7.3 sen per share Interim dividend per share of 4.0 sen announced in 1H17 Annual dividend payout ratio i
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Slide 14: Performance Review in 1H17 – L&H Malaysia
MALAYSIA PERFORMANCE REVIEW IN 1H17 – L&H Revenue (RM’mil) 7,000 6,000 5,418 5,490 5,684 5,577 5,623 5,362 5,000 4,000 3,000 2,654 2,789 2,000 1,000 - FY11 FY12 FY13 FY14 FY15 FY16 1H16 1H17 Recorded higher revenue despite: • Disruptions arising from ongoing GITP development works • Challenging op
Slide 15: Performance Review in 1H17 – L&H Malaysia
MALAYSIA PERFORMANCE REVIEW IN 1H17 – L&H Adjusted EBITDA (RM’mil) / Margin (%) 3,000 39% 42% 37% 35% 35% 35% 35% 35% 2,500 31% 35% 2,107 2,042 1,972 1,931 1,942 2,000 1,860 28% 1,500 21% 1,000 924 871 14% 500 7% - 0% FY11 FY12 FY13 FY14 FY15 FY16 1H16 1H17 Adjusted EBITDA margin remains consisten
Slide 16: RWG Key Statistics in 1H17
MALAYSIA RWG KEY STATISTICS IN 1H17 10.6m 70% VISITORS DAY-TRIPPERS (1H16: 10.1m) ↑5% (1H16: 71%) 4.0m 2.6m MEMBERS TICKETS SOLD (1H16 : 4.0mil) ↑24% (1H16: 2.1mil) 16
Slide 17: RWG Visitation Numbers in 1H17
MALAYSIA RWG VISITATION NUMBERS IN 1H17 Visitors Arrivals 17
Slide 18: RWG Hotel Performance in 1H17
MALAYSIA RWG HOTEL PERFORMANCE IN 1H17 10,000 1.6m ROOMS ROOM NIGHTS SOLD 6 HOTELS (1H16: 1.5m) ↑7% RM91 93% AVRG ROOM RATE OCCUPANCY ↓2% (1H16:RM93) (1H16: 92%) 18
Slide 19: RWG Hotel Performance in 1H17
MALAYSIA RWG HOTEL PERFORMANCE IN 1H17 ARR & Occupancy 19
Slide 20: Well
Qe Well GENTING 20
Slide 21: GITP Overview
GITP OVERVIEW A major 10-year master plan launched in Dec 2013 RM10.38 billion capital investment Invested RM5.5 billion as at 30 June 2017 ………… Opening progressively in 2017 and beyond 21
Slide 22: GITP Overview
GITP OVERVIEW 2016 Awana SkyWay Cable Car SkyAvenue Mall 2015 First World Hotel (Tower 3) 2017 2018 onwards SkyPlaza New Indoor Theme Park Hotel on the Park 20th Century Fox Theme Park All-suite Premium Luxury Hotel Additional Luxury Hotels 2015 2016 2017 2018 onwards ……. Looking forward to new exci
Slide 23: SkyAvenue
SKYAVENUE …………Exciting shopping and dining experience at 6,000 feet 23
Slide 24: SkyAvenue – F&B Outlets
SKYAVENUE – F&B OUTLETS Burger & Lobster Cafés Richard Malaysian Food Street Motorino …… Unique dining experience featuring renowned restaurants 24
Slide 25: Awana SkyWay
AWANA SKYWAY SkyAvenue Mall Awana SkyWay Cable Car system Awana Station Awana Station Genting Highlands Premium Outlets* Artist Impression Denotes Awana SkyWay route *A property of Genting Simon Sdn Bhd, a JV between Genting Plantations Berhad and Simon Property Group ..….. Transporting visitors to
Slide 26: UK, US & Bahamas
Bahamas CT (ewlel NEW YORK CITY ie; 1 3 Lae a PAWAMAS GD Reet Wworlel GENTING RT CASINO MARINA GENTING MALAYSIA 26
Slide 27: Genting Casinos United Kingdom
GENTING CASINOS UNITED KINGDOM 27
Slide 28: United Kingdom Performance Review in 2Q17 and 1H17
UNITED KINGDOM PERFORMANCE REVIEW IN 2Q17 and 1H17 % % In £’mil 2Q17 2Q16 1H17 1H16 Change Change Revenue 80.6 91.6 ↓12% 170.3 182.8 ↓7% Adjusted EBITDA 9.6 16.4 ↓42% 24.1 33.4 ↓28% Adjusted EBITDA 12% 18% 14% 18% Margin Revenue in 2Q17 and 1H17 impacted by: • Lower hold percentage from the premiu
Slide 29: United Kingdom Performance Review – 1H17
UNITED KINGDOM PERFORMANCE REVIEW – 1H17 Revenue (£’mil) 400 339 324 317 320 290 236 231 240 183 170 160 80 - FY11 FY12 FY13 FY14 FY15 FY16 1H16 1H17 Visitors ↑ 6% to 4.4m in FY16 (FY15: 4.2m) Visitors ↓ 3% to 2.1m in 1H17 (1H16: 2.2m) 29
Slide 30: New York City
NEW York city NEW YORK CITY 30
Slide 31: US – RWNYC Performance Review in 2Q17 and 1H17
US – RWNYC PERFORMANCE REVIEW IN 2Q17 and 1H17 % % In US$’mil 2Q17 2Q16 1H17 1H16 Change Change Revenue 67.1 62.7 ↑7% 130.9 124.5 ↑5% Adjusted EBITDA 29.1 27.2 ↑7% 53.6 50.2 ↑7% Adjusted EBITDA 43% 43% 41% 40% Margin Improved commission structure with NY state authority Average WPU at US$431 in
Slide 32: US – RWNYC Performance Review – 1H17
US – RWNYC PERFORMANCE REVIEW – 1H17 Revenue (US$’mil) 300 240 250 238 239 240 211 180 125 131 120 60 26* - FY11 FY12 FY13 FY14 FY15 FY16 1H16 1H17 Approximately 5,500 machines in operation at the facility Continues to lead the Northeast US region (by gaming revenue) at approx. 43.0% market shar
Slide 33: US – RWNYC Non-Gaming Expansion
US – RWNYC NON-GAMING EXPANSION Broke ground on a USD400 million non-gaming expansion in July 2017 New attractions include a new 400-room hotel, additional gaming space and a variety of dining, entertainment and retail experiences Scheduled to be completed by mid-2019 Artist Impression 33
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Slide 35: Bahamas – RW Bimini Performance Review
BAHAMAS – RW BIMINI PERFORMANCE REVIEW IN 2Q17 and 1H17 % % In US$’mil 2Q17 2Q16 1H17 1H16 Change Change Revenue 8.5 12.0 ↓28% 12.7 17.6 ↓28% Adjusted EBITDA (9.4) (12.7) ↑26% (26.6) (31.1) ↑14% Narrowing losses in 1H17 vs 1H16 from continued cost rationalisation initiatives Implemented revised
Slide 36: Genting Malaysia
GENTING MALAYSIA 36
Slide 37: First Light Resort and Casino
FIRST LIGHT RESORT AND CASINO Located at Taunton, Massachusetts, US Invested approx. US$347.4 million* in interest bearing promissory notes Project is currently stalled pending further developments** The Group is working closely with the Tribe to review all options available * As at 30 June
Slide 38: Genting Malaysia
GENTING MALAYSIA 38
Slide 39: Looking Ahead: Prospects and Focus
LOOKING AHEAD PROSPECTS AND FOCUS Global Outlook Optimistic on the growth potential in the L&H industry in the longer term Resorts World Genting Leverage on new facilities under the GITP Optimising operational efficiencies Improve yield management and database marketing efforts 39
Slide 40: Looking Ahead: Prospects and Focus
LOOKING AHEAD PROSPECTS AND FOCUS Overseas Strengthen position in the non-premium players business in the UK Improve operational efficiencies at Resorts World Birmingham Continue to boost direct marketing efforts in RWNYC Continue cost rationalisation initiatives in Resorts World Bimini RWNY
Slide 41: Questions & Answers
Q&A QUESTIONS & ANSWERS 41
Slide 42: Disclaimer
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 directors and management of the Genting Malaysia Group