Mandarin Oriental International Limited
Mandarin Oriental International — Mandarin Oriental Hotel Group — FY2019 Earnings Presentation
34 slides from Mandarin Oriental International's earnings presentation, 2020
Slide 1: 2019 Annual Results
2019 ANNUAL RESULTS Mandarin Oriental Hotel Group
Slide 2: 2019 Annual Performance and Highlights
2019 Annual Performance and Highlights • Re-opening of Hyde Park London hotel and Bangkok hotel • Commenced redevelopment of The Excelsior site • Four new hotels opened, seven new projects announced • Fans of M.O. exceeded half a million members • Pledge to eliminate all single-use plastic on premis
Slide 3: 2019 Annual Results Highlights
2019 Annual Results Highlights US $ m 2019 2018^ restated Combined Total Revenue* 1,325 1,398 Group Revenue# 567 614 Underlying EBITDA 155 188 ^ The comparative figures in 2018 have been restated due to the adoption of the new accounting standard - IFRS 16 ‘Leases’ * Includes revenue from the total
Slide 4: 2019 Annual Results Highlights
2019 Annual Results Highlights 2019 2018 restated Underlying Profit Attributable to Shareholders (US $ m) 41 65 # Net Non-Trading Losses (US $ m) (97) (22) Underlying Earnings per Share (US ¢) 3.26 5.15 Total Dividends per Share (US ¢) 3.00 3.00 Adjusted Net Asset Value per Share (US $) 4.70 4.62 #
Slide 5: 2019 Annual RevPAR Performance
2019 Annual RevPAR Performance 600 -1% 500 526 532 400 +1% 0% US $ 300 314 311 2019 -1% 279 280 200 2018 201 204 100 0 Asia EMEA^ America Total • All references to RevPAR are in US dollar terms on a like-for-like basis, unless otherwise stated. The like-for-like basis only includes hotels that were
Slide 6: Current Global Portfolio
CURRENT GLOBAL PORTFOLIO Prague London Paris Munich Boston Geneva Beijing New York Barcelona Lake Como Tokyo Madrid Milan Washington DC Marrakech Bodrum Shanghai Doha Guangzhou Miami Dubai Hong Kong Sanya Taipei Abu Dhabi Bangkok Macau Canouan Kuala Lumpur Singapore Jakarta Santiago 33 hotels MANDAR
Slide 7: 2019 Annual Hotel Performance
2019 Annual Hotel Performance Asia – Overall RevPAR down 1%* Mandarin Oriental, Hong Kong Impacted by social unrest, though F&B resilient Tokyo Solid earnings and RevPAR performance Singapore Maintained strong performance from 2018 Bangkok River Wing closed for renovation Kuala Lumpur Occupancy incr
Slide 8: 2019 Annual Hotel Performance
2019 Annual Hotel Performance EMEA – Overall RevPAR down 1%* Paris Increased occupancy despite ongoing protests Munich Local currency RevPAR up 7% Geneva Reduced occupancy, stable rates London Quickly re-established leading position in the city Madrid Opening in late summer 2020 * Because Mandarin O
Slide 9: 2019 Annual Hotel Performance
2019 Annual Hotel Performance America – Overall RevPAR up 1% Boston Remains market leader despite increased supply Miami 5% increase in RevPAR New York Market leading position, though revenues lower Washington D.C. Improvement needed despite RevPAR growth MANDARIN ORIENTAL
Slide 10: Redevelopment of The Excelsior Site
Redevelopment of The Excelsior Site • Commenced on 1st May 2019 • Demolition is 40% complete • Constructions costs of some US$650 million and expected to complete in 2025 • The Excelsior contributed US$9 million in underlying EBITDA in 2019, compared to US$35 million in 2018 MANDARIN ORIENTAL
Slide 11: Strategy
Strategy • To be recognised as the world's best luxury hotel group • Brand is the Group's most powerful asset • People underpin the Mandarin Oriental experience • Personalisation is key • Digital technologies are a major opportunity • Expanding the portfolio is a key priority • Colleagues must be em
Slide 12: Development
DEVELOPMENT
Slide 13: Development Portfolio
DEVELOPMENT PORTFOLIO Moscow London New York Luzern Istanbul Beijing Barcelona Dallas Tel Aviv Nanjing Boca Raton Dubai Shenzhen Honolulu Grand Cayman Muscat Manila Phuket Saigon Expected to open within the next 5 years Hotels (18) Residences (12) MANDARIN ORIENTAL
Slide 14: Development Strategy
Development Strategy • Major city-centre and resort locations where brand is currently absent • Reinforce position in key markets • Grow hotel portfolio by an average of three new properties per year MANDARIN ORIENTAL
Slide 15: Number of Announced New Projects
Number of Announced New Projects 8 7 6 No. of Projects 5 4 3 2 1 0 2014 2015 2016 2017 2018 2019 Year * Excluding the previously announced projects in Beirut (2015), Melbourne (2017) and Viña del Mar (2018) which are currently on hold MANDARIN ORIENTAL
Slide 16: New Project: Mandarin Oriental Residences at Fifth Avenue
New Project Mandarin Oriental Residences at 685 Fifth Avenue (Management contract) • 69 branded residences MANDARIN ORIENTAL
Slide 17: New Project: Mandarin Oriental Etiler, Istanbul
New Project Mandarin Oriental Etiler, Istanbul (Management contract) • Second luxury hotel in Istanbul • 158 rooms and 251 branded residences MANDARIN ORIENTAL
Slide 18: New Project: Mandarin Oriental, Nanjing
New Project Mandarin Oriental, Nanjing (Management contract) • Located on Qinhuai River • 106 rooms and suites MANDARIN ORIENTAL
Slide 19: New Project: Mandarin Oriental Palace, Luzern
New Project Mandarin Oriental Palace, Luzern (Management contract) • 146 rooms and suites MANDARIN ORIENTAL
Slide 20: New Project: Mandarin Oriental, Dallas
New Project Mandarin Oriental, Dallas (Management contract) • 176 rooms and 100 branded residences MANDARIN ORIENTAL
Slide 21: New Project: Mandarin Oriental, Tel Aviv
New Project Mandarin Oriental, Tel Aviv (Management contract) • 225 rooms and 231 branded residences • First luxury hospitality brand to enter the city MANDARIN ORIENTAL
Slide 22: New Project: Emirates Palace, Abu Dhabi
New Project Emirates Palace, Abu Dhabi (Management contract) • 394 rooms and suites • To be rebranded as a Mandarin Oriental property after a phased renovation completes • The Group’s second hotel in the United Arab Emirates MANDARIN ORIENTAL
Slide 23: Hotel Openings
Hotel Openings Mandarin Oriental, Doha Mandarin Oriental Jumeira, Dubai Opened on 9th March 2019 Opened on 18th February 2019 Mandarin Oriental, Lago di Como Mandarin Oriental Wangfujing, Opened on 15th April 2019 Beijing Opened on 15th March 2019 MANDARIN ORIENTAL
Slide 24: Financial Review
Wp W777 FINANCIAL REVIEW
Slide 25: Underlying EBITDA Performance
Underlying EBITDA Performance Key Highlights US $ m 2019 2018 restated Underlying EBITDA 155 188 • Closure of The Excelsior had substantial impact on earnings • Impact of Hong Kong protests broadly offset by improved profitability and insurance recovery in London • Tokyo underlying EBITDA up some 30
Slide 26: Financial Review: Non-trading Items
Financial Review Non-trading Items US $ m 2019 2018 restated Fire at Mandarin Oriental Hyde Park, London Repair expenses and write-off of tangible assets and other incidental expenses (8) (29) Insurance recovery for replacement of tangible assets and other incidental expenses 9 30 Closure of The Exc
Slide 27: Cash Flow Statement – Operating Activities
Financial Review Cash Flow Statement – Operating Activities 2019 2018 US $ m restated Operating Activities # EBITDA from subsidiaries and non-cash items 132 160 Dividends and interest from associates and JVs 6 8 Working capital movement (3) 18 Net interest and other financing charges paid (16) (14)
Slide 28: Cash Flow Statement – Investing Activities
Financial Review Cash Flow Statement – Investing Activities 2019 2018 US $ m restated Investing activities Net capital expenditure on existing properties (42) (53) Capex for redevelopment of The Excelsior (15) - Payment on Munich expansion (1) - # Net advance to associates and joint ventures (13) (8
Slide 29: Summary Cash Flow Statement
Financial Review Summary Cash Flow Statement US $ m 2019 2018 restated Operating Activities 113 153 Investing Activities (80) (69) Financing Activities Net drawdown of borrowings 34 28 Dividends paid (38) (38) Others (7) (7) Net increase in cash 22 67 Opening cash balance 1st January 247 184 Effect
Slide 30: Net Debt
Financial Review Net Debt US $ m 2019 2018 restated Net debt 300 285 Adjusted shareholders’ funds# 5,936 5,827 Gearing 5% 5% Adjusted net asset value per share (US $) 4.70 4.62 Hedging ratio on gross debt 47% 44% Average tenor on debt 4.2 years 0.8 years Cash 271 247 Undrawn committed debt facilitie
Slide 31: Future Significant Capital Commitments
Financial Review Future Significant Capital Commitments US $ Timing Madrid restoration (Group’s 50% share) 30m 2020 Munich extension 137m 2020-24 Redevelopment of The Excelsior site 575m 2020-25 Total 742m • The Group’s strong balance sheet is well-placed to fund capital commitments through the use
Slide 32: Coronavirus Update
Coronavirus Update • Significant impact to occupancy from late January in mainland China and Hong Kong hotels • Other Asian hotels also affected, but so far to a lesser extent • Recent developments will impact Europe and Middle Eastern hotels • Too early to assess impact on 2020 results, full impact
Slide 33: 2020 Outlook
2020 Outlook • Remain focused on long-term strategic priorities • Full year of earnings from the newly renovated London hotel • Full re-opening of Bangkok hotel • Absence of earnings from The Excelsior hotel • Mandarin Oriental Ritz, Madrid to open in late summer MANDARIN ORIENTAL
Slide 34: Questions to investors@mohg.com
Questions to investors@mohg.com
Mandarin Oriental Hotel Group — FY2019 Earnings Presentation on 6ix