Genting Malaysia Bhd. · MYX:GENM
Genting Malaysia Bhd — AIC 2011 – Hong Kong
33 slides from Genting Malaysia Bhd's conference presentation, March 2011
Slide 1: Corporate Presentation
Corporate Presentation AIC 2011 – Hong Kong March 2011 1
Slide 2: Our Vision
Our Vision: To be the leading Leisure, Hospitality & Entertainment Corporation in the world 2
Slide 3: Agenda
Agenda ♠ Introduction ♥ Financial Highlights ♣ Resorts World Genting ♦ Genting United Kingdom ♠ Resorts World New York ♥ Looking Ahead 3
Slide 4: Introduction
Introduction
Slide 5: Overview
Overview Market capitalisation of US$6.5 billion (RM20 billion) Resorts World Genting - Asia’s leading integrated leisure & entertainment resort Over 19.9 million visitors in 2010 Over 13,000 employees Over 3 million Genting loyalty WorldCard™ members 10,000 rooms at the Resorts World Genting EBITDA
Slide 6: Snapshot of GENM - Market performance
Snapshot of GENM - Market performance Share Price and Volume Traded Average Volume Traded Daily Past 1 month 4,792,667 Past 3 months 4,728,502 Past 6 months 6,112,765 Currently the 8th largest gaming company Source : Bloomberg (as at 17th March 2011) 6
Slide 7: Corporate Structure – Leisure & Hospitality
Corporate Structure – Leisure & Hospitality Genting Berhad Berhad 49.37% Leisure, hospitality, Others entertainment and gaming 18.44% 100% 100% 100% 100% 50% 100% 50% 7
Slide 8: Global Peer Comparison
Global Peer Comparison EBITDA (US$) by Property in 2010 … Amongst the world’s largest gaming property 8
Slide 9: Member of the Genting Group Global Network
Member of the Genting Group Global Network PRESENCE AND ACCESSIBILITY Sales and Marketing Offices 11 Major countries Casino Network Resorts World Genting Resorts World Sentosa Resorts World Manila Genting Hong Kong Genting UK Resorts World New York ( 2H 2011) … Extensive coverage 9
Slide 10: Financial Highlights
Financial Highlights GENTING MALAYSIA : 10
Slide 11: Financial Performance at a Glance
Financial Performance at a Glance Continue to grow the top line: Includes maiden contribution from UK’s casino business Better luck factor in the Malaysian premium players business Source : Company financials …………. Within expectations 11
Slide 12: Revenue and Adjusted EBITDA
Revenue and Adjusted EBITDA Performance measures Revenue growth : 5-year CAGR of 8% Adjusted EBITDA growth : 5-year CAGR of 7% Leisure & Hospitality Adjusted EBITDA margin • Malaysia - 39% (2009: 41%) • UK - 10% (2009: 15%) Source : Company financials ……….… Consistent growth and margins 12
Slide 13: Capital Management Strategy
Capital Management Strategy Share Buy Back Initiated since July 2007 To date, bought back 253m shares for RM847m 4.28% of total issued capital Dividend Dividend growth : 5-year CAGR of 11% Dividend payout ratio (over adjusted earnings) of 25% Source : Company financials …………… Continuing emphasis on
Slide 14: Aerial view of Resorts World Genting
Aerial view of Resorts World Genting 14
Slide 15: Resorts World Genting - Visitors & Revenue
Resorts World Genting - Visitors & Revenue Continued revenue growth despite regional competition (2010 : 3% vs 2009 : 1%) Yield management programs and marketing activities – important drivers Revenue growth : 5-year CAGR of 8% Visitors growth : 5-year CAGR of 1% Average spend : 5-year CAGR of 6% pe
Slide 16: Resorts World Genting - Entrenched Domestic Position
Resorts World Genting - Entrenched Domestic Position Day trippers - in excess of 70% of total visitors to RWG. Bus Program underpinned weekday occupancy Malaysians took over 60% of rooms sold. Source : Company financials …………… Domestic mass support continues 16
Slide 17: Resorts World Genting - Consistent High Occupancy Rates
Resorts World Genting - Consistent High Occupancy Rates Six hotels (3-5 stars) at RWG with 10,000 rooms Average hotel occupancy of 93% in 2010 (2009: 92%) Average Room Rate of RM81 (USD 27) WorldCardTM members takes up more than 61% (2009: 53%) of room sold Avg Room 76 77 72 78 75 81 Rate (RM) Sourc
Slide 18: Resorts World Genting - Gaming Breakdown
Resorts World Genting - Gaming Breakdown BREAKDOWN OF GAMING REVENUE VIP Premium Member privileges Competitive marketing and high level of service delivery Expanded gaming pie Non-VIP WorldCardTM loyalty program Strong domestic support Competitive room rates and F&B Source : Company financials ……………
Slide 19: 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 19.9m+ visitors Mass • Different price points Market • Competitive room rates, F&B and Theme Park prices … … providing providing great great value value to
Slide 20: View of Mint Casino
View of Mint Casino 20
Slide 21: Genting UK Overview
Genting UK Overview Genting Malaysia completed the acquisition of Genting UK on 15 Oct 2010 Largest casino operator in UK in terms of number of casinos (46 casinos) Genting UK’s performance: FY10 Revenue - £ 196m vs 194m (FY09) FY10 EBITDA - £ 20m vs 29m (FY09) Visitors - 3.4m vs 3.5m (FY09) 21
Slide 22: Genting UK - Action plans
Genting UK- Action plans Challenging operating environment in 2011. Plans include: Increase Asian clientele visitations to London casinos Reposition certain provincial casinos with leisure-centric concept (2011 Capex: £20m ) Further capitalise on IT and propriety customer management system New licen
Slide 23: Artist impression of Resorts World New York
Artist impression of Resorts World New York, subject to change 23
Slide 24: Overview – Resorts World New York (RWNY)
Overview – Resorts World New York (RWNY) Occupies 210 acres (Aqueduct Racetrack) in South Ozone Park in the Borough of Queens, New York In Sept 2010, Genting New York was awarded a 30 years license to operate 4,500 Video Lottery Terminals (VLT). Total Project Cost ~ US$ 500mil (Includes upfront lice
Slide 25: Resorts World New York – Key Features
Resorts World New York – Key Features Area Total area of 413,000 sq. ft (including 135,000 sq. ft casino floor area) Number of VLTs 4,500 electronic slot machines (VLTs) Casino Designated low and high limit areas for video gaming F&B facilities Signature Restaurant, Chinese Cuisine, Food Court, 300-
Slide 26: Resorts World New York – VLT Facility
Resorts World New York – VLT Facility Artist impression of Resorts World New York, subject to change 1: Grand Entrance with covered entry way, three-storey 6: Sports bar restaurant and lounge atrium 7: Skyway pedestrian bridge connecting casino to MTA train 2: State of the art casino 8: Indoor car p
Slide 27: Resorts World New York – Aerial View
Resorts World New York – Aerial View JFK u tes Airport 5 min MTA s Statio i nut e 20 m n La Guardia Airport 27
Slide 28: Looking Ahead
GENTING MALAYSIA Looking Aheac 28
Slide 29: Prospects and Focus
Prospects and Focus Resorts World Genting Continue to intensify yield management programs Increase efforts to tap on the regional growth of the leisure and hospitality market Genting UK Further strengthen domestic business through a program to reinvigorate the Group’s casino estate Improve links wit
Slide 30: Future Expansion
Future Expansion Resorts World Genting Continue to upgrade facilities and infrastructure (Capex - RM500m in 2011) No new room capacity envisaged at this stage Other Opportunities US Middle East (Egypt) UK – Solihull (West Midlands) Vietnam 30
Slide 31: 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 Global business expansion 31
Slide 32: Accolades
Accolades Resorts World Genting 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 Lead
Slide 33: 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