Galaxy Entertainment Group Limited · HKEX:27
Galaxy Entertainment — H1 2010 Earnings Presentation
26 slides from Galaxy Entertainment's earnings presentation, Aug 31, 2010
Slide 1: Interim Results 2010
Interim Results 2010 August 31, 2010
Slide 2: Executive Summary: Operational Highlights
Executive Summary Operational Highlights • Galaxy reports Half Year Record EBITDA $990 million up 91% over 2009 • Galaxy Entertainment reports SEVEN consecutive quarters of EBITDA growth with $573 million in Q2 2010 • StarWorld reports EIGHTH consecutive quarter of EBITDA growth with third consecuti
Slide 3: Executive Summary: Development and Balance Sheet Highlights
Executive Summary Development Highlights • Capitalizing on strong market performance by accelerating Galaxy Macau™ rollout program and enhancing and expanding our resort facilities with a modest 5% increase in the budget to $14.9 billion • Remains on schedule to open in early 2011 and fully funded •
Slide 4: Galaxy Entertainment Group
Galaxy Entertainment Group August 31, 2010 4
Slide 5: GEG Revenue Summary for Q2 2010
GEG Revenue Summary for Q2 2010 Group revenue grew 70% over prior year led by StarWorld Revenue (HK$ mn) 4,618 % Change % Change Q2 yoy Q2 to Q1 QoQ 311 GEG Total 70% 17% 386 2,715 StarWorld 94% 17% City Clubs 11% 22% 342 349 3,921 Construction Materials (9)% 9% 2,024 Q2 09 Q2 10 StarWorld CityClubs
Slide 6: GEG Revenue Summary for First Half 2010
GEG Revenue Summary for First Half 2010 Group revenue grew 61% over prior year led by StarWorld Revenue (HK$ mn) 8,571 % Change % Change 1H yoy 1H10 to 2H09 596 GEG Total 61% 24% 702 5,335 StarWorld 81% 30% 608 City Clubs 0 9% 700 7,273 Construction Materials (2)% (6)% 4,027 1H 09 1H 10 StarWorld Ci
Slide 7: GEG EBITDA Summary
GEG EBITDA Summary EBITDA*(HK$ mn) GEG reports SEVENTH consecutive 990 quarters of EBITDA growth 518 • 1H10 Group EBITDA increased 91% yoy led by StarWorld™ EBITDA increase of 111% 2009 1H 2010 1H • Construction Materials seeing positive EBITDA*(HK$ mn) impact from Mainland stimulus package 573 95 4
Slide 8: Overview of First Half 2010 Results
Overview of First Half 2010 Results • EBITDA grew 91% to HK$990 million • Pro Forma NPAS increased 153% to $608 million • Reported actual NPAS of HK$475 million (in HK$ mn) 1H2009 1H2010 Change Total Revenue (Statutory Basis) 5,335 8,571 61% EBITDA 518 990 91% Gain on bond buyback and loss on redemp
Slide 9: StarWorld Hotel
31 «ja % StarWorld Hotel
Slide 10: StarWorld Overview
StarWorld Overview 8 consecutive quarters of EBITDA growth % Change % Change % Change Revenue Q2 yoy Q2 to Q1 QoQ 1H yoy • 3 consecutive all time record StarWorld Total 94% 17% 81% EBITDA quarters VIP Gaming 106% 21% 93% Mass Gaming 27% (18)% 19% • 1H10 EBITDA grew 111% over Slots 38% (2)% 45% prior
Slide 11: StarWorld VIP Turnover
StarWorld VIP Turnover Macau VIP Gaming Rolling StarWorld VIP Gaming Turnover HKD'b HKD'b VIP T/O VIP T/O 1,500.0 140 129 120 1,200.0 102 98 973 100 891 81 900.0 797 80 687 558 55 54 600.0 60 495 40 300.0 20 0.0 0 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 • Macau’s VIP
Slide 12: StarWorld EBITDA Margin
StarWorld EBITDA Margin Continue to grow business profitability with margin expansion to 23% in Q2 2010 (US GAAP) HK GAAP US GAAP 23% 18% 18% 17% 17% 16% 13% 11% 11% 10% 10% 10% 09 Q1 09 Q2 09 Q3 09 Q4 10 Q1 10 Q2 09 Q1 09 Q2 09 Q3 09 Q4 10 Q1 10 Q2 August 31, 2010 Note: estimates by Galaxy 12
Slide 13: StarWorld Hotel Occupancy
StarWorld Hotel Occupancy at StarWorld consistently higher than overall market with a focus driving gaming occupancy ADR (HK$) Occupancy Rate 1,238 96% 1,172 1,110 1,078 85% 77% 66% Q2 2009 Q2 2010 Q2 2009 Q2 2010 StarWorld Average of 5 Star Hotel in the market StarWorld Average of 5 Star Hotel in t
Slide 14: StarWorld Hotel Recognition
StarWorld Hotel Recognition Year Award Association World Hotel． Continental Diamond 2010 World Hotel Association, China Awards – Top Ten Charming Hotels 7th Golden Pillow Award of China Best Business Hotel in Macau Hotels Best Entertainment and Gaming Theme Golden Horse Award of China Hotel Hotel To
Slide 15: City Clubs
City Clubs August 31, 2010 15
Slide 16: City Clubs
Q2 2010 EBITDA (HK$ mn) City Clubs 41 38 • CityClubs continue to make a valuable contribution • Prudent management to ensure continuing profitability Q2 09 Q2 10 1H 2010 EBITDA (HK$ mn) 84 71 1H 09 1H 10 August 31, 2010 16
Slide 17: Construction Materials
Construction Materials August 31, 2010 17
Slide 18: Construction Materials
Construction Materials Q2 2010 EBITDA (HK$ mn) 95 • Solid performer with improving 64 market conditions • Benefits from stimulus package materializing Q2 09 Q2 10 • EBITDA improvement reflects shift in business mix towards 1H 2010 EBITDA (HK$ mn) higher value added products 163 • Joint Ventures do n
Slide 19: Liquidity Update
Liquidity Update August 31, 2010 19
Slide 20: Cash on Hand & Long-term Debt
Cash on Hand & Long-term Debt Galaxy Debt Profile By Maturity (USD'm) Dec 31, 2009 Jun 30, 2010 • Redeemed the outstanding 2010 300 281 & 2012 bonds in January and 250 May respectively 192 200 165 165 150 106 100 • Closed HK$9 billion Club Loan to 50 finance Galaxy Macau™ in June 0 0 0 0 2010 FRN 20
Slide 21: Galaxy Macau
August 31, 2010 MACAU mw PY ok I “World Class, Asian Heart” MARTE > TSSESCM 21
Slide 22: Galaxy Macau Update
Galaxy Macau™ Update Strengthening market conditions support accelerating rollout program and expanding scope with a modest increase in budget to $14.9 billion Fully funded and remain on schedule to open in early 2011 • Capitalizing on exceptional market performance Investing an additional $800 mill
Slide 23: Galaxy Macau
Galaxy Macau™ August, 2010 August 31, 2010 23
Slide 24: Summary Positioned for Growth
Summary Positioned for Growth Operations • GEG reports SEVEN consecutive quarters of EBITDA growth • Galaxy commenced • StarWorld™ reports EIGHT consecutive quarters EBITDA growth with a vision • Building + recruiting world class management team Financing • “To be Asia’s • Closed upsized club loan t
Slide 25: Disclaimer
Disclaimer This document and any verbal presentation or discussion have been prepared by Galaxy Entertainment Group Limited (the “Company”) solely for your personal reference. The information provided has not been independently verified. No representation or warranty express or implied is made as to
Slide 26: Interim Results 2010
Interim Results 2010 August 31, 2010
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